Avrupa’ needs to invest in its business, innovation and infrastructure to achieve its climate goals and initiate an economic recovery.
But almost half of EU companies say they plan to cut investments after the Covid pandemic.
Werner Hoyer, President of the European Investment Bank (EIB), explains that the pandemic has made investment decisions “ more complex: “Income and resources of companies are decreasing steadily”. “Europe’'s competitiveness and its role in the world” is a major concern for “, he says.
How does InvestEU help?
InvestEU, a new EU programme, is mobilizing billions of euros in capital, taking on some financial risks for investors. It guarantees 26 billion euros from the EU budget and 7 billion euros from partner banks. Around 370 billion euros in public and private financing are expected to be mobilized.
The money will be transferred to projects that contribute to innovation and digitalization, SME ’s, especially projects that have been hit hard by the COVID crisis, encourage social participation and strengthen sustainable infrastructure.
Minimum of all investments ’u should contribute to the construction of a greener Europe by supporting the green transition of the European Union.
The European Commission works in partnership with the European Investment Bank ’, as well as other national promotional banks and international financial institutions.
InvestEU is following the steps of the European Strategic Investment Fund ’ (EFSI), also known as the Juncker Plan, which has successfully secured more than €500 billion in extra investments.
What does this investment look like in the field?
The European Union is working to revive the former coal mining town of Wałbrzych’i in the heart of Poland's Silesia’. It's been dependent on coal for 500 years, and that's changing now.
Wałbrzych received a 14m-euro loan from EIB’ to help him overcome the coal age and renovate the city center. The loan was partially backed by the European Commission.
Roman Szelemej, mayor of Wałbrzych, says that this means the reconstruction of a quarter of the Old City of “. This is especially “, who can start a new life, who can provide a new life to the old city” witnessed the revival of “social lives for new families.
EIB’den Werner Hoyer believes that investing in infrastructure and skills training is essential in places like Wałbrzych.
“, the coal miner who jumped out of the last coal mine in Southern Silesia’, will not be in charge of the digital Start-Up’ in two weeks, so we need to help these people move into the next generation of jobs, ” explains.
Social housing system
Wałbrzych is not the only town to benefit from the European investment plan. PolandPoznan’da, the fifth largest city in ’, focuses on social and affordable housing.
The mayor of Poznan, Jacek Jaskowiak, explains that “, we need to build some apartments for young people and the elderly”.
’ says that if these people take some money and help them settle in Poznan“a, they can find a good job and send their children to kindergarten. Affordable housing is a strategy to bring more life and work back to the city.
The program is expected to create homes for 3,000 to 4,000 people.
Aleksandra, 69, is already one of the beneficiaries of this project. He says he was thrilled when he was able to move into his new apartment with a balcony.
He says he will never be able to buy a place alone for financial reasons.
EIB security label
To finance this housing project, developer PTBS applied to EIB’ for a loan of half the total cost. It helped make up for investors' reluctance.
PTBS CEO ’ Andrzej Konieczny explains that banks do not trust them at first because the project is different from the business they usually finance. However, “ added that they managed to reach an agreement with the EIB and that they trust ”biz.
The company expects this project to be successful and looks at future projects with the EIB’nin ‘onay seal’.
From July 2021’, InvestEU will replace the Juncker plan. This time, local banks, such as the BGK in ’, Poland, will also work with the EIB.
