Finance Minister Hartwig Löger meets Commission Vice President Jyrki Katainen According to the EU Commission, InvestEU is to replace EFSI and to raise around 650 billion Euros in additional investment by means of EU guarantees

On the occasion of the informal meeting of the Council of Ministers of the Federal Government in Brussels, Finance Minister Hartwig Löger met Commission Vice President Jyrki Katainen to discuss the “InvestEU” fund, which has just been presented for the first time.

InvestEU is intended to combine various financing instruments under one roof, raising 650 billion Euros in additional investment and thereby creating additional jobs. The European Commission is willing to provide 38 billion in EU guarantees for investment in the areas of infrastructure, research, innovation and digitalisation, small and medium-sized companies, and also for the implementation of the “social pillar”. The latter signifies in particular a more pronounced focus on social investment and competencies.

Finance Minister Hartwig Löger welcomed the proposal at the working meeting with Commission Vice President Jyrki Katainen: “Guarantees are a good and effective lever for increasing investment activity. We expect to see positive effects in Austria particularly in rural areas, where a lot of progress is being made in the field of digitalisation and infrastructure expansion”. Both Löger and Katainen are convinced that “InvestEU” will contribute to the realisation of the political aims of the EU, such as sustainability, academic excellence and social integration. As Löger pointed out, it was also very pleasing that the simplification of structures and administration means that it is now possible to achieve more at lower cost.

Until implementation is completed, however, great care needs to be taken to ensure that the administrative machine does actually become more efficient as a result of the consolidation, and does not merely acquire an additional layer in the form of a “supervisory body”. As Löger points out: “The fund is to be set up in the course of the negotiations for the new multiannual financial framework. We will therefore be very careful to ensure effective implementation”.