Instruments for Financing Investment Opportunities in Post-Crisis Europe: The Investment Plan for Europe

Author:Mariana Trandafir, Manuela Panaitescu
Pages:286-293
SUMMARY

The study is based on an analysis of the opportunities provided by The Investment Plan for Europe. The Plan, launched in December 2014, aims at stimulating additional investment at least EUR 315 billion in real economy in the 2015-2017 period and making the most of every public euro mobilized through both new and existing instrument, in order to achieve the high multiplier effect. The challenge... (see full summary)

 
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European Integration - Realities and Perspectives. Proceedings 2016
286
Instruments for the Financing Investment Opportunities in Post-Crisis
Europe: The Investment Plan for Europe
Mariana Trandafir1, Manuela Panaitescu2
Abstract: The study is based on an analysis of the opportunities provided by The Investment Plan for Europe.
The Plan, launched in December 2014, aims at stimulating additional investment at least EUR 315 billion in
real economy in the 2015-2017 period and making th e most of every public euro mobilized through both new
and existing instrument, in order to achieve the high multiplier effect. The challenge for the Member States is
to put the funds made available by these instruments to productive use in order to support sustainable jobs
and growth in Europe. In this context, Romania is facing a major challenge: to promote projects of interest to
investors, economically viable, sufficiently mature and consistent with EU poli cy p riorities. According
official sources, until the mid - March 2016, only two projects was selected for financing throu gh The
Investment Plan for Europe. The study contributes to the identification of the new innovative financial
instruments th at could improve the access to finance in general and to Romanian projects especially. The
analysis uses the most recent official data, official d ocuments published by the European Commission and
other institutions in the field.
Keywords: The European Fund for Strategic Investments; financial instruments; the Eu ropean Investment
Bank
1. Introduction
The recent global crisis has brought deep changes on all levels of economic and financial activity,
affecting strongly also the investments at European level. In 2014, six years after the global financial
crisis started, the pace of economic recovery in the EU is still slow, weak investment has been one of
the main reasons for the weakness of this recovery (Final Task Force Report, 2014). Although there is
considerable variation between Member States and sectors, EU investment activity in 2013 was 15
percent or some EUR 430 billion below the pre-crisis peak in real terms; in the hardest-hit Member
States the shortfall ranges from 25 to over 60 percent. (Final Task Force Report, 2014, EIB, 2015). It’s
important to mention that, for most of the euro area Member States which have been heavily hit by the
crisis, both private and public investments have collapsed with the crisis and that low levels of public
investment, if maintained over a prolonged period, may lead to a deterioration of public capital and
diminish longer-term growth potential. (ECB, 2016). In the 2012-2014 period, for instance, the public
investment- to- GDP ratio was between 1,9 in Ireland and 5,6 in Estonia while the private investment
to- GDP ratio was between 12,9 in Portugal and 21,3 in The Czech Republic (chart 1).
1 Associate Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd.,
Galati, Romania, Tel.: +40372361102, Fax. +40372361290, E-mail: marianatrandafir@univ-danubius.ro.
2 Senior Lecturer, PhD, Danubius University o f Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd.,
Galati, Romania, Tel. +40372361102, Fax. +40372361290, Corresponding author: manuelapanaitescu@univ-danubius.ro.

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