Earlier today, the ECOFIN has adopted a statute on the European Fund for Strategic Investments (EFSI). The regulation, supported also by Hungary, provides guarantees for high-risk loans in order to boost the economy and ignite growth. As Minister for National Economy Mihály Varga said, further measures are required to improve the competitiveness of European countries.

Thus, a new instrument is added to the financing tools of the European Investment Bank (EIB) that will enable the implementation of some high-risk investment projects through an EU guarantee. The EFSI aims to provide impetus to the currently sluggish lending in Europe mainly through engaging liquid private sector funds the investors of which -- due to unstable market environment -- would otherwise shy away from committing funds. The EFSI helps investors of large-scale infrastructural projects (in the field of research and development, transportation, energy) and SMEs to obtain EIB funding bolstered by guarantees.

Mihály Varga stressed that Hungary has endorsed the agreement on the EFSI statute, as it is in line with Hungarian economic policy objectives and it offers new financing tools for domestic financial services provides and enterprises. The Minister added that Hungary must learn more of conditions – such regulations on state support – and potential Hungarian projects to formulate a final Hungarian standpoint. As he pointed out, competitiveness within the EU must be improved by further measures, among others by the amendment of regulations on taxation, labour and energy prices.

(Ministry for National Economy)