What is the InvestEU Programme?

What is the InvestEU Programme?

The promotion of recovery, green growth, employment and well-being across Europe is one of the EU’s top priorities, supporting investment that delivers real benefits and makes a difference at the local level.

The InvestEU Programme builds on the successful model of the Investment Plan for Europe, the Juncker Plan. It will bring together, under one roof, the European Fund for Strategic Investments and 13 other EU financial instruments.

The InvestEU programme will have a budgetary guarantee of €26.2 billion funded from NextGenerationEU resources and the Multiannual Financial Framework. The overall investment to be mobilised on this basis is estimated at more than €372 billion across the EU, of which 30% will contribute to climate objectives.

InvestEU Programme aims to give an additional boost to investment, innovation and job creation in Europe over the period 2021-27.

Policy areas of the InvestmentEU Programme

The programme will be structured around four policy ¨windows¨:

  1. Sustainable Infrastructure
  2. Research, Innovation and Digitalisation
  3. SMEs
  4. Social Investment and Skills

Strategic investments focusing on building stronger European value chains as well as supporting activities in critical infrastructure and technologies will be possible under all four windows.

Building bricks of the InvestEU Programme

InvestEU Fund aims to mobilise more than €372 billion of public and private investment through an EU budget guarantee of €26.2 billion that backs the investment of implementing partners such as the European Investment Bank (EIB) Group and other financial institutions.

The InvestEU Advisory Hub will provide technical support and assistance to help with the preparation, development, structuring and implementation of projects, including capacity building.

The InvestEU Portal will bring together investors and project promoters by providing an easily-accessible and user-friendly database.

Who can apply?

The InvestmentEU Programme was tailored to provide long-term funding to companies and to support European Union policies in a recovery from a deep economic and social crisis, promoting green growth, employment and well-being across Europe.

The InvestEU is aimed to provide capital support to SMEs which face significant risks due to the crisis caused by the Covid-19 pandemic. To benefit from support, SMEs should have a viable business model and contribute to long term EU policy objectives.

The eligible final recipients can be natural or legal persons established in an EU country or in a Third Eligible Country, including:

  • Private entities such as special-purpose vehicles (SPV) or project companies, large corporates, midcap companies, including small midcap companies, and SMEs
  • Public sector entities (territorial or not) and public-sector type entities
  • Mixed entities, such as public–private partnership (PPPs) and private companies with a public purpose
  • Non-for-profit organisations

Member States will also have the option to use InvestEU as a tool to implement their recovery and resilience plans under the Recovery and Resilience Facility (RRF).

The InvestEU guarantee will be open to the EIB group and also to multiple implementing partners, including international financial institutions and national promotional banks and institutions. This will facilitate a rapid deployment of the funds and ensure local outreach.

How to apply?

Through the InvestEU Fund:

If you are a project promoter you should apply directly to implementing partners who will offer tailor-made financing solutions based on the financial products supported by the EU guarantee.

Financial intermediaries should also consult the offering of implementing partners active in their regions proposing relevant products: it is up to them to select financial intermediaries through procedures such as calls for expressions of interest.

Eligible InvestEU Implementing Partners, in addition to the EIB Group, will be listed on the website of InvestEU Programme.

If you represent Small mid-caps, SMEs and social or micro-enterprises  you should apply to your local commercial or public banks whose financial products are covered by the EU guarantee in your country or region. The local intermediary will inform you if a particular financing programme is covered by the InvestEU Fund.

You can find your local intermediary on Access to Finance website, which already lists intermediaries under current EU programmes and will also list InvestEU financial intermediaries as of the launch of the programme.

The InvestEU is aimed to provide capital support to SMEs
Through the The InvestEU Portal

If you are a project promoter based in the EU wishing to attract potential investments worldwide and increase your visibility, you can register your project on European Investment Project Portal (EIPP) – Portal. The submission process is quick and easy. A dedicated user-friendly tool will guide you through the registration process. Registration and publication of the project on the Portal is free of charge.

If you are an investor looking for investment opportunities in areas such as energy efficiency, digital economy, transport, healthcare, renewable energy, broadband or social infrastructure, or in financing SMEs, the Portal (EIPP) will give you a broad choice of interesting projects. You need only to register on the portal. A dedicated tool will guide you through the registration process in completing your user profile

Wishing you a good luck! Source: https://europa.eu/investeu/home_en

From Fast Track to Innovation to Accelerator

From Fast Track to Innovation to Accelerator

The main changes in the financing mechanism of the European Innovation Council (EIC)

The recently finished Horizon2020 framework programme contributed financially to addressing the main challenges in Europe, as well as the promotion of industrial leadership, and has helped to consolidate the excellence of its scientific base.

One of the most important aspects of this programme was reflected in its strategic objective no. 2 ” Developing technologies and their applications to improve European competitiveness”, from which the two most important financial instruments to encourage technological disruption and the creation of new markets through new processes and products: Fast-Track to Innovation (FTI) and SME Instrument (SME Instrument). 

Of these, fast-track to innovation represented the largest financing mechanism for European companies for the agile market launch of innovative concepts, driven by the industry, and with great potential to make these companies grow. 

In figures: 

More than € 5 billion invested; Some 5,700 SMEs and startups received support during 2014-2020, 90% of the subsidized innovation was related to development objectives (Digitization, Health and the Green Deal).

The program of the European Innovation Council (EIC) seeks to create fluency in the transition from science towards new products, services and creating new markets. In this regard, the new framework program Horizon Europe made major changes in these strategic lines and may, today, be the most ambitious European initiative within l to innovation strategy 2021-2027.

EIC will support funding through 3 main instruments: Pathfinder, for advanced research in disruptive technologies, Transition, which will fund ideas and projects evaluated and approved in Pathfinder and the ERC proof-of-concept program (Horizon2020), and Accelerator for unique entities that seek to develop and scale-up high-risk, high-impact, innovative technologies close to the market. It is this last instrument whose scope already covers the previous Fast-Track and SME Instrument.

The main changes to the program can be summarized as:

Budget: it will double the investment, € 10 billion for 2021-2027 vs € 5 billion in the previous framework program.

Composition: two instruments (FTI and SMEInstrument) that have now been merged into one (Accelerator), opening a wide range of options and opportunities for companies and two additional lines to finance joint innovation proposals with scientific and technological participation (Pathfinder and Transition).

Technology Maturity Level (TRL): 6-8 in FTI to 5-9 in Accelerator.

Maximum European Commission contributions per share: up to € 3 million in FTI. Now two new structures at Accelerator (up to € 2.5 million in grants or € 17.5 million if equity investment is included).

It should be noted that ECI is always open to innovation and technologies in all fields, excluding those areas related to military development.

ECI is always open to innovation and technologies in all fields, excluding those areas related to military development

And what about those derivative projects eligible for financing that come from Horizon 2020 results?

Horizon Europe will continue to support the initiatives derived from Horizon 2020 and provides an opportunity to finance proposals resulting from the previous framework program that can be included within the Accelerator scheme. For this purpose, a review of the project should be requested from the responsible funding body to assess the innovation or the potential for deployment in the market and decide whether the project is suitable to receive support under this scheme.