Increasing the efficiency of the EU guarantee under the InvestEU Regulation and simplifying reporting requirements
The European Parliament adopted by 519 votes to 65, with 73 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2015/1017, (EU) 2021/523, (EU) 2021/695 and (EU) 2021/1153 as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements.
The proposed regulation aims to amend the InvestEU programme regulation to enable more efficient use of existing resources. The objective is to address market failures at EU and Member State level, close the investment gap within the Union, accelerate the EU's green and digital transition, improve its competitiveness, and strengthen its industrial base.
The European Parliament adopted its position at first reading by amending the Commission's proposal as follows.
EU Guarantee
The EU guarantee for the EU compartment will amount to EUR 29 052 310 073 in current prices. It will be provisioned at a rate of 40%. An additional Union guarantee may be granted for the ‘Member States’ compartment, subject to the allocation of the corresponding amounts by the Member States.
With the increase of EUR 2 900 000 000 in the Union guarantee supported by additional reimbursements of EUR 1 160 000 000 and the implementation of measures to increase efficiency by combining the capabilities of instruments inherited from the past with the InvestEU Fund, around EUR 55 000 000 000 of additional investments could be mobilised.
An amount of EUR 14 227 310 073 in current prices from the amount of the Union guarantee will be allocated to the specific objectives of the programme (support for financing and investment operations related to sustainable infrastructure and research, innovation and digitalisation, strengthening the accessibility of financing for SMEs and social enterprises).
The financial envelope allocated to the implementation of the measures provided for in Chapters VI (InvestEU Advisory Platform) and VII (InvestEU Portal) is EUR 470 000 000 in current prices.
The amended text stipulates that 75 % of the EU guarantee under the EU compartment, amounting to EUR 21 789 232 555, will be granted to the EIB Group. The EIB Group will provide an aggregate financial contribution amounting to EUR 5 447 308 139.
Key priorities
An increased guarantee from the Union will allow:
- in the context of the housing crisis, to substantially support key social investment and skills priorities, including affordable social housing, while contributing to the implementation of the European Pillar of Social Rights;
- in the context of Russia's aggression against Ukraine, to provide significant support for the priority of substantially strengthening EU security, its defence technological and industrial base and military mobility.
In order to ensure the transition to a green economy, the text further underlined the need for investments in trans-European transport networks to complete missing links and modernise transport infrastructure, where significant gaps exist in public and private funding.
InvestEU advisory services
These services play an important role in the development of a pipeline of projects. According to the amended text, it would be appropriate to use EUR 40 million in reflows to increase the amount to be made available for such services. Furthermore, it is necessary to enhance the interaction between the various components of the InvestEU Programme, in particular between the InvestEU Advisory Hub and the InvestEU Portal.
Simplification
In line with the overall objective of simplification in order to alleviate the administrative burden for final recipients, financial intermediaries and implementing partners, reporting requirements, including those relating to key performance and monitoring indicators, should be reduced, where appropriate, in particular those that affect small businesses and small-size operations.
In this context, an SME means is defined by an enterprise which, according to its last annual or consolidated accounts, employs an average number of employees during the financial year of less than 250 and has an annual turnover not exceeding EUR 50 million.
To complement this amending regulation, the Commission should consider taking further non-legislative simplification measures, such as reducing the frequency of progress reports to be submitted by implementing partners in order to reduce the workload of implementing partners, financial intermediaries and final recipients.
State aid procedures applicable to operations supported under the InvestEU Fund should be proportionate, predictable and streamlined.
Final report
In order to support the European Parliament and the Council in exercising their institutional roles, the independent final evaluation report on the InvestEU Programme should comprise a comparative assessment of the InvestEU Programme’s performance before and after the entry into force of this amending Regulation including its derogations and regulatory adjustments.