EU Finance Ministers Back EIB Group’s Action Plan to Enhance Capital Markets and Support Innovative Companies

EU Finance Ministers Back EIB Group’s Action Plan to Enhance Capital Markets and Support Innovative Companies

(IN BRIEF) European Union finance ministers have endorsed a new Action Plan from the European Investment Bank (EIB) Group aimed at strengthening the Capital Markets Union. This initiative is designed to broaden financing options for innovative European companies and unicorns, with a focus on expanding the European Tech Champions Initiative, increasing equity and venture capital investments, and introducing an Exit platform for tech startups. EIB Group President Nadia Calviño highlighted the plan’s potential to channel savings into productive investments, boost innovation, and create jobs. The EIB aims to enhance market integration for green and digital bonds and address funding gaps throughout the innovation cycle. The EIB Group is positioned as a key player in developing a robust Savings and Investments Union within the EU.

(PRESS RELEASE) LUXEMBOURG, 8-Oct-2024— /EuropaWire/ — European Union finance ministers have expressed their support for a new Action Plan presented by the European Investment Bank (EIB) Group, aimed at enhancing the Capital Markets Union. Discussed during a recent Eurogroup meeting in Luxembourg, the plan is designed to broaden financing options and tools for scaling up innovative European companies and unicorns. The EIB Group plans to expand the successful European Tech Champions Initiative Fund-of-Funds, increase equity and venture capital investments for growing businesses, and introduce an Exit platform to facilitate the acquisition and listing of tech startups.

EIB Group President Nadia Calviño emphasized that this Action Plan will play a pivotal role in enabling European innovators to expand their operations, thereby channeling savings into productive investments and driving innovation, job creation, and sustainable growth within the region. The plan focuses on three core areas: enhancing market integration for green and digital bonds, addressing funding gaps throughout the innovation cycle, and mobilizing large-scale investments for key EU policy priorities, such as housing.

Today’s discussions centered on strategies for financing the growth of European unicorns, including extending the European Tech Champions Initiative and scaling up equity and venture debt investments. A new dedicated fund will support the acquisition and listing of tech startups by European companies.

These proposals will be refined further by the EIB’s Board of Directors in collaboration with the European Commission. This initiative follows the Eurogroup’s earlier mandate to enhance access to financing for small and medium-sized enterprises and innovators through new instruments aimed at integrating European capital markets.

In April 2024, EU leaders committed to advancing the integration of the Union’s capital markets, aligning with European Commission President Ursula von der Leyen’s political guidelines for a Savings and Investment Union. Addressing capital market fragmentation has been recognized as critical for improving European competitiveness, a sentiment echoed by notable figures like Enrico Letta and Mario Draghi in their reports. The European Central Bank has consistently highlighted the necessity of a deep and integrated single market for capital to ensure financial stability and achieve vital EU policy goals, such as financing green and digital transitions.

The EIB Group, uniquely positioned as the only pan-European financial institution, operates across all EU member states and has extensive expertise in developing innovative financing solutions. Recently, it celebrated reaching a €100 billion milestone in green bond issuance, establishing itself as the largest provider of venture debt in Europe. With a robust AAA credit rating and strong Environmental, Social, and Governance credentials, the EIB Group offers a comprehensive range of products and services, catering to clients from the public sector to SMEs and innovative startups.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment contributing toward EU policy goals. The EIB Group is the largest provider of venture debt in Europe and the largest public investor in European venture capital funds. It is also a major financier of climate investment, with over €100 in cumulative green bond issuances, and is well on track to support €1 trillion in green investment in the critical decade to 2030.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects last year. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Media Contacts:

Nikos Chrysoloras
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+352 4379-83078

Monica Faro
m.faro@eib.org
+352 4379-71105

Shirin Wheeler
s.wheeler@eib.org
+32 474 242494

Press Office

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SOURCE: European Investment Bank