On the occasion of the installation of the new European Commission, theAssociation of European Deposit and Loan Banks (Elti) has presented a joint appeal to renew and strengthen the InvestEU programme. Under the Guide by Dario Scannapieco, CEO of Cassa Depositi e Prestiti (Cdp) and president of Elti, the main European financial institutions for promotion propose a ambitious goal: mobilize public and private resources to support infrastructure, innovation and sustainability.
The appeal, supported by 19 CEOs of national promotional institutes, is part of the framework of European investment policies outlined by the recent Report by Mario Draghi, which has identified an annual requirement of 800 billion euros to ensure the competitiveness of the Union.
Elti: the pillars of InvestEu 2.0
The document signed by Elti highlights three priorities to optimize the impact of public finances:
- Direct access to EU funds for national promotional banks
- Innovative financial instruments to maximize the leverage effect of public investments
- Simplifying procedures, making project management more efficient
With an overall balance of 2.800 billion euros e annual commitments of 300 billion, of which 125 are earmarked for sustainable finance, Elti, which today includes 33 financial institutions from over 20 European countries, can represent a key player for the economic and social future of Europe.
Elti: the text of the joint letter
"In quality of managing directors of the National Promotional Banks and Institutions (NPBIs) and of the International Financial Institutions of Europe, as well as members of the European Long-Term Investors Association (Elti), we are ready to intensify our efforts to Strengthening European competitiveness.
With combined total assets of €2,8 trillion in 2023 and annual commitments of nearly €300 billion, of which €125 billion dedicated to sustainable finance, We play a crucial role in mobilising additional resources, public and private, for the European economy.
We serve as significant sources of long-term funding at national level, where we are best placed to directly support local projects, in line with European priorities, often risky and of small or medium scale. We are equally engaged at European level, collaborating on pan-European initiatives in key strategic sectors. We often do this through our long-standing partnership with the European Commission, acting as Implementing Partners and intermediaries for the deployment of funds from the main EU investment programmes.
Il Draghi report identifies a annual investment needs of €800 billion to restore European competitiveness and encourages NPBIs to further coordinate their efforts, scale up their activities and take bolder financing decisions. In this regard, we can make a significant contribution if the right conditions are in place.
To expand their capacity to finance riskier projects, NPBIs need direct access to budget guarantees, as for example currently foreseen by the European Commission in thescope of the InvestEu Programme.
We can deploy a variety of financial instruments in many strategic European sectors. To cite some examples, we can support research and innovation through direct and intermediated investments in Venture Capital; supporting access to finance for SMEs investing in innovation through portfolio guarantee schemes; investing in infrastructure, security and critical raw materials through direct and intermediated equity investments”.
