The plenary session of the European Parliament gave the green light to the future European investment plan, the so-called InvestEU, on Thursday.
Aiming to generate almost €700 billion in investments, the ‘InvestEU’ initiative replaces the current European Fund for Strategic Investments (EFSI, which was part of the ‘Juncker-Plan’) that was set up after the 2008 financial crisis.
Between 2021 and 2027, InvestEU will prioritise the creation of employment, the promotion of economic, territorial and social cohesion in the European Union (EU) and the reduction of emissions to comply with the commitments of the Paris Agreement.
In keeping with this promise, the InvestEU program aims to dedicate at least 55 percent of the budget to support sustainable infrastructure for climate and environment purposes, the Parliament reported in a statement.
The new project will streamline up to 14 investment promotion funds already in operation and bring together under one roof, the European Fund for Strategic Investments, or InvestEU for short.
Since 2015, the Juncker plan has created some 750,000 jobs ( a figure that is expected to reach 1.4 million by 202) an mobilised an additional €335 billion across the EU since 2015.
In a statement, the president of the European Commission, Jean-Claude Juncker, said that the plan, which bears his name, has managed to “comply with the number one priority of the Commission: create jobs and growth”, and he said that the InvestEU program will help Europe to “remain an attractive place for investors around the world”.
MEPs intend to increase the Commission’s proposed budget for the investment fund from €38 billion to €40.8 billion, to trigger €698 billion in investments.
Negotiations will now continue between the European Parliament and the Council to reach a definitive agreement with a view to the fund starting to operate in 2021.