The European Commission is set to increase its financing program “Invest EU” by 2.5 billion euros and combine it with other funds. According to a draft, this will enable the mobilization of 50 billion euros in public and private capital.
The draft for “Invest EU” is one of two “omnibus” regulations that the Commission will present on Wednesday. It proposes increasing the EU’s investment guarantee from 26.1 to 28.6 billion euros. The financing is to be achieved by recouping funds from completed projects. Additionally, “Invest EU” will be combined with older funding pots to expand the scope of the fund.
The fresh funds are intended to be used to help start-ups expand, with the additional capacity primarily being used to finance activities with a higher risk, the draft says. Specifically, equity investments and riskier forms of lending could be supported.