The European Commission signed today four guarantee agreements worth €216 million that will help unlock €2 billion to invest in renewables, urban infrastructure and start-ups in Africa and the Neighbourhood. The guarantees were signed with the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the German KfW Group and the Spanish development cooperation agency, Agencia Española de Cooperación Internacional para el Desarrollo (AECID), at the 4th Strategic Board meeting of the External Investment Plan (EIP).
Commenting on these financial guarantees, Jutta Urpilainen, Commissioner for International Cooperation and Development, said: “The agreements signed today, worth €216 million, will aim to unlock €2 billion in new investment in Africa and the EU Neighbourhood. These guarantees share in the risk and help mobilise and attract public and private investments. They will help boost the supply of renewable energy to communities and businesses in Africa and the EU Neighbourhood, help small businesses invest and create jobs, and make African cities more resilient to growing populations and the effects of climate change. They are an example of how the EU’s new Green Deal initiative benefits citizens of our partner countries outside the EU”.
Commissioner for Neighbourhood and Enlargement Olivér Várhelyi added: “We want to ensure an investment boost that will drive forward growth and provide concrete benefits and opportunities to the people, for example when it comes to big infrastructure projects or the support to young entrepreneurs. The direct support to investment is a key element, but so are good governance and a conducive business environment that helps attracting investment, both domestic and foreign. This is why the External Investment Plan supports our partner countries also in developing more effective legal frameworks, policies and institutions that promote economic stability, sustainable investment and inclusive growth.”
Four guarantees, one goal: more investment where it’s needed the most
These guarantees will significantly boost investment in renewable energy and increase access to finance for small businesses (MSMEs), while also improving investment in urban infrastructure and services in Sub-Saharan Africa and in the EU Neighbourhood.
· Resilient City Development (RECIDE)
This €100 million guarantee agreement is signed with AECID, the Spanish development cooperation agency. It targets Sub-Saharan Africa and the EU Neighbourhood. It will help cities develop public-private partnerships and lower the risks for private investors involved in financing urban infrastructure, focusing on: energy efficiency, flood protection, public transport, water sanitation and solid waste treatment. The guarantee reassures lenders that they will recover at least some of their investment in the event of losses and lowers borrowing costs.
· Boosting Investment in Renewable Energy
This €50 million guarantee agreement with EBRD will help to scale up investment in renewable energy in Ukraine and in the EU Southern Neighbourhood, in particular in Jordan, Lebanon and Tunisia. It will substantially boost renewable energy potential. The guarantee will help to generate a total investment of up to €500 million and is expected to provide 340 MW of additional installed renewable energy capacity.
· Supporting Investment in Sustainable Energy
This €46 million guarantee agreement with the KfW Group will help to expand the generation of renewable energy in Sub-Saharan Africa and cut the region’s carbon emissions and increase energy efficiency. It will partially cover the offtake risks in renewable energy projects, such as windfarms and solar energy. This guarantee will give many more people access to energy and reduce power shortages.
· SME Access to Finance
This €20 million guarantee agreement with EIB is targeting Small and Medium Enterprises (SMEs) in the EU Neighbourhood, with a particular focus on young entrepreneurs, women entrepreneurs and start-ups. It will provide affordable funding to small businesses, with less access to finance because local financial institutions consider them as riskier clients. The guarantee is providing local banks and financial institutions a first loss credit protection. This guarantee will sustain around 18,000 jobs and support 1,000 small businesses.
These guarantees are part of the External Investment Plan, which aims to mobilize more than €47 billion by 2020 in public and private investment for development in countries neighbouring the EU and in Africa using €4.6 billion in EU funds.
The EU External Investment Plan has three pillars. The first is finance. Through financial guarantees, the EU mitigates the risk in countries with difficult environments so that private investors and development banks will lend to entrepreneurs or finance development projects. Three guarantee agreements had previously been signed so far: Nasira Risk-Sharing Facility and FMO Ventures, with the Dutch Development Bank and Archipelagos – One Platform for Africa, with Cassa Depositi e Prestiti (CDP), the Italian Development Bank, and the African Development Bank (AfDB).
The plan’s second part is technical assistance. This funds experts who help authorities, investors and companies develop new projects. Technical assistance may include, for example, market intelligence and investment climate analysis, targeted legislative and regulatory advice, support to partner countries in implementing reforms, chains and identification, preparation, and help to carry out necessary investments.
The third pillar consists of investment climate support. The EU works closely with
governments in partner countries to help them improve the conditions which
investors need like a good business environment and
economic stability. The EU also brings together governments and business to
discuss investment challenges.
The External Investment Plan is a key part of the Africa-Europe Alliance for Sustainable Investment and Jobs, launched in September 2018 with the objective of creating 10 million jobs in five years, boosting investment and promote sustainable development. The von der Leyen Commission intends to use the full potential of the External Investment Plan to boost private capital and investment, including through further guarantee agreements.
Relocation of unaccompanied children from Greece to Portugal and Finland
On 7 and 8 July, 49 unaccompanied children were relocated from Greece to Portugal and Finland as part of a scheme organised by the Commission and the Greek Special Secretary for Unaccompanied Minors, in partnership with UN agencies and the European Asylum Support Office.
These two operations mark the beginning of the main phase of the scheme. With preparatory work coordinated by the Commission now completed and coronavirus-related travel restrictions easing, relocations will proceed progressively over the next months. The next transfers will take place later in the month, with 18 children finding new homes in Belgium, 50 in France, 106 (including siblings and parents) in Germany, 4 in Slovenia and 2 in Lithuania.
While the scheme started with an aim to relocate at least 1,600 children and young people, Member States have now pledged up to 2,000 places. The scheme is focused primarily on unaccompanied children, but will also include children with severe medical conditions and their core family members. At the same time, durable solutions for the protection and care of those unaccompanied children that will stay in Greece must also be found. The Commission stands ready to provide increased support for Greece and Member States in this respect.
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “In a tangible expression of support to Greece, Portugal and Finland will soon open their doors to 49 children as part of our programme to relocate unaccompanied minors. This is the embodiment of the European spirit of solidarity and I truly commend the Member States taking part. We cannot, however, rely on ad hoc solutions forever. No Member State should be left alone to shoulder a disproportionate responsibility. The aim of the New Pact on Migration and Asylum will be to ensure that solidarity is provided on a permanent basis.”
Commissioner for Home Affairs, Ylva Johansson, said: “We have worked tirelessly to make sure that relocations can take place despite complications caused by the outbreak of the coronavirus. Seeing that these 49 children will start a new life in Portugal and Finland shows our efforts are bearing fruit. Our services are working well with Greek authorities and international organisations on this scheme, turning pledges into action.”
Greek Alternate Minister of Migration Policy Giorgos Koumoutsakos said:“49 unaccompanied minors have departed yesterday and today to start a new life in another EU Member State, in Portugal and Finland. I want to thank Portugal and Finland for the support and for this tangible gesture of solidarity. I also want to express my gratitude to the European Commission for the continuous help and encouragement so as to make possible the relocation of 1,600 unaccompanied minors to other Member States.”
As of mid-June, there were over 4,800 unaccompanied children in Greece. As part of the Action Plan for immediate measures to support Greece, the Commission proposed to relocate up to 1,600 children as part of a scheme supported by the European Asylum Support Office (EASO), the International Organization for Migration (IOM), the United Nations High Commissioner for Refugees (UNHCR) and the United Nations International Children’s Emergency Fund (UNICEF).
To date, 11 Member States and Norway (Belgium, Bulgaria, France, Croatia, Finland, Germany, Ireland, Portugal, Luxembourg, Lithuania and Slovenia) are participating in the scheme. The first relocation operations took place in April, when 12 children were relocated from Greece to Luxembourg and 47 to Germany. On 17 June, 8 unaccompanied children were relocated to Ireland, following a bilateral agreement that predates the scheme. Finally, 6 unaccompanied children who could not be relocated to Germany in April as they were not fit for travel at the time were transferred to Germany on 26 June.
Relocations under the scheme will be carried out progressively in groups of various sizes to ensure adequate reception capacity in the receiving Member States. In addition to its coordinating role, the European Commission is financially supporting most preparatory and pre-departure steps in Greece, as well as the transfer costs, while Member States can also request funding for participating in the scheme (€6,000 per person transferred).
Commission invests €1 billion in innovative clean technology projects
The Commission is launching the first call for proposals under the Innovation Fund , one of the world’s largest programmes for the demonstration of innovative low-carbon technologies, financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System. The Innovation Fund will finance breakthrough technologies for renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage. It will provide a boost to the green recovery by creating local future-proof jobs, paving the way to climate neutrality and reinforcing European technological leadership on a global scale.
Executive Vice-President Frans Timmermans said: “This call for proposals comes at just the right time. The EU will invest €1 billion in promising, market-ready projects such as clean hydrogen or other low-carbon solutions for energy-intensive industries like steel, cement and chemicals. We will also support energy storage, grid solutions, and carbon capture and storage. These large-scale investments will help restart the EU economy and create a green recovery that leads us to climate neutrality in 2050.”
For the period 2020-2030, the Innovation Fund will allocate around €10 billion from the auctioning of allowances under the EU Emissions Trading System, in addition to undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme.
The first call will provide grant funding of €1 billion to large-scale projects for clean technologies to help them overcome the risks linked to commercialisation and large-scale demonstration. This support will help new technologies to reach the market. For promising projects which are not yet ready for market, a separate budget of €8 million is set aside for project development assistance.
The call is open for projects in eligible sectors from all EU Member States, Iceland and Norway. The funds can be used in cooperation with other public funding initiatives, such as State aid or other EU funding programmes. Projects will be evaluated according to their potential to avoid greenhouse gas emission, innovation potential, financial and technical maturity, and potential for scaling up and cost efficiency. The deadline for submission of applications is 29 October 2020. Projects can apply via the EU Funding and Tenders portal where more details on the overall procedure are available.
The Innovation Fund aims to create the right financial incentives for companies and public authorities to invest now in the next generation of low-carbon technologies and give EU companies a first-mover advantage to become global technology leaders.
The Innovation Fund will be implemented by the Executive Agency for Networks and Innovation (INEA), while the European Investment Bank will provide project development assistance to promising projects that are not ready for full application.
Member States need to do more to ensure the good functioning of the EU Single Market
Commission is publishing the Single Market Scoreboard 2020, which shows that despite improvements in certain areas, Member States need to do more to ensure the proper functioning of the Single Market. As experienced during the coronavirus crisis, a well-functioning single market is crucial for ensuring the free movement of supplies across the EU and vital for the swift recovery of the EU economy. The results of this year’s Scoreboard, which is available as an online tool, highlight the importance of the renewed focus on implementation and enforcement outlined by the Commission’s Enforcement Action Plan adopted in March 2020. Above all, a fully functioning single market needs a partnership between the Commission and the Member States. The newly created Single Market Enforcement Task Force will be one of the key tools to foster such a collaborative approach between Commission and Member States.
The Single Market Scoreboard provides a detailed overview of how EU single market rules were applied in the European Economic Area (EEA) in 2019. It evaluates how Member States have performed as regards market openness, governance tools as well as in specific policy areas, based on a number of selected indicators. The findings are presented in the form of a “traffic light” chart, by attributing red (below average), yellow (average) and green (above average) cards.
In comparison to the previous year, this year’s Scoreboard notes a steady situation in most Member States, but observes a small decline in overall performance. In total, the Scoreboard awarded 158 green cards (153 in 2018), 107 yellow cards (137 in 2018) and 59 red cards (59 in 2018). The best performing countries in 2019 were Latvia, Cyprus, Denmark, Estonia, Finland, and Slovakia, while least improvements were observed in Spain, Italy, France and Austria.
Other key findings of the 2020 Single Market Scoreboard include:
- Uneven enforcement of single market rules: while Member States significantly improved the transposition of EU legislation, the number of infringement procedures has grown, partly due to incompletely or incorrectly transposed EU legislation. The Scoreboard notes a particular improvement in the enforcement of consumer-related legislation, thanks to the strong coordinating role of the European Commission and the European Consumer Centres Network.
- Expanded administrative cooperation among Member States: the use of the Internal Market Information system (IMI), which supports Member States’ administrative cooperation in 16 policy and legal areas, has increased by 52% and now covers 59 cross-border administrative procedures.
- Steady increase in use of tools helping citizens and businesses benefit from the single market: the number of citizens using Your Europe information portal and the Your Europe Advice services has drastically increased (+48% for Your Europe with 35 million visits and +52% for Your Europe Advice with 35 thousand enquires). The caseload of SOLVIT, an informal problem-solving tool, increased by 4% overall.
- More work needed in specific policy areas: further improvements are needed to ensure the free movement of professionals, especially to ensure more decisions recognising professional qualifications. The public procurement performance of Member States continues to be uneven, in particular as regards contracts awarded to single bidders.
The Single Market Scoreboard is an online tool, which aims to monitor the performance of the Member States by using clear indicators, with the objective to improve the functioning of the Single Market.
In particular, the annual Single Market Scoreboard evaluates how Member States:
- implement EU rules;
- create open and integrated markets (e.g. public procurement, trade in goods and services);
- handle administrative issues concerning foreign workers (e.g. professional qualifications);
- cooperate and contribute to a number of EU-wide governance tools (e.g. Your Europe portal, SOLVIT, and EURES )
The Single Market Scoreboard evaluates performance in three policy areas, two areas regarding market openness and integration, and 12 governance tools.
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