Investment Plan for Europe

Policy makers should earmark € 8 billion in the EU-Budget to serve as EU-guarantee to the EFSI. They should also attempt to limit potential losses of the EFSI. This is best done by the EIB issuing bonds with a contract clause entailing that creditors will be serviced only as long as EFSI losses do not exceed € 21 billion. Also, the EU-Commission should self-commit itself to fully applying EU-state aid law both to investment projects which profit from EFSI support only and to projects profiting from additional national financial support. Most of all, legal certainty in European and Member States’ regulation must be increased. This is a cheap and very effective way of removing barriers to investment.