EU Commssion publishes half-time evaluation of InvestEU

It notably finds that, halfway through its lifetime, InvestEU has already unlocked €218 billion in additional investments, with 90% of the EU guarantee allocated. The Programme consists of three components: the InvestEU Fund, the InvestEU Portal, and the InvestEU Advisory Hub.

The interim evaluation confirms the Programme’s essential role in bridging investment gaps in strategic EU policy priorities and mobilising private and public investments. InvestEU has provided robust support to the EU economy through a broad range of financial and advisory solutions across all main EU policy areas, such as investments in renewable energy production, clean industrial manufacturing  and competitiveness of small and medium-sized enterprises (SMEs). It has also shown flexibility in response to various crises, addressing emerging policy priorities and investment needs.

Launched in 2021, InvestEU unifies 14 formerly independently managed EU financial instruments and advisory initiatives into a single, cohesive programme to give an additional boost to investment, innovation and job creation in Europe. By 2028, it aims to trigger more than €372 billion in additional public and private investment using an EU budget guarantee of €26.2 billion to help finance the green, digital and social transition. This guarantee backs the investments of InvestEU Implementing Partners such as the European Investment Bank Group and other international and national public banks, increasing their risk-bearing capacity.

Key findings and lessons learnt

Key findings and lessons learnt of the interim evaluation of the InvestEU Programme cover:

• Implementation is well-advanced. 90% of the available EU guarantee has been allocated to the 16 Implementing Partners, including the European Investment Bank (EIB) Group, International Financial Institutions and National Promotional Banks and Institutions. Almost 80% of the allocated guarantee has already been approved. However, the evaluation also finds that the available budget is insufficient compared to the high market demand and significant investment needs, calling for budgetary reinforcements.
• InvestEU is having a meaningful crowding-in effect. As of 31 December 2023, it is expected to have mobilised around €218 billion in investment, of which 65% from private sources, with an anticipated multiplier effect of 14.76.
• The Programme provides clear added value and the EU budget guarantee features high additionality. InvestEU Implementing Partners can engage with higher risk counterparts, deploy riskier financial products or conditions, and finance activities with inherently higher risk, enabling investments that could not otherwise secure market financing on reasonable terms. This enables InvestEU to address significant investment needs and market demands, such as support for the development of innovative technologies and pioneering start-ups.
• InvestEU contributes to building and shaping new markets by investing in emerging technologies (e.g. space, semi-conductors, the blue economy or quantum computing) and European start-ups. It also pioneers new financial products in the market (equity and debt), including guarantees for sustainable SMEs, clean industry as well as affordable housing. InvestEU is thus not only supporting immediate investment needs but laying the ground for the EU’s long-term competitiveness. For instance, InvestEU has increased its support to EU companies in line with strategic EU initiatives such as the European Wind Power Action Plan, the Net-Zero Industry Act and the Critical Raw Materials Act. Furthermore, an Export Credit Guarantee Facility was launched to support exports by European companies to Ukraine.
• The market-based approach of InvestEU, implemented in indirect management across Member States and third countries contributing to it, allows addressing EU policy priorities while aligning interests of Implementing Partners and leveraging private sector finance.
• It has shown flexibility in addressing emerging policy priorities and investment needs, deploying public funds to de-risk and catalyse investments for SMEs, innovation and digitalisation, sustainable infrastructure and social sectors.
• The support of the InvestEU Advisory Hub, helping project developers with the preparation, development, structuring and implementation of investment projects, was considered crucial for generating project pipelines, including for innovative projects for the green and digital transition, building client capacity and developing new markets, with clear targets for projects that align with EU policy objectives. Beneficiaries of advisory support include SMEs, corporates, and public authorities across all Member States.
• The InvestEU Portal, the online platform connecting EU companies and global investors, has the potential to add value to the wider investment ecosystem through EU funded matchmaking and pitching events.

Background

The InvestEU Regulation requires that the Commission provide the European Parliament and the Council with an interim evaluation on the implementation of the Programme. It covers results until 31 December 2023.

This interim evaluation will be followed by a final evaluation at the end of the InvestEU Programme delivery. This final evaluation must be delivered by 31 December 2031.