The InvestEU Programme

The InvestEU Programme is the European Commission's funding programme to support the European economy and policy objectives. It helps to mobilize private investments for the EU's policy priorities, such as the green and digital transition, innovation and social investments and skills. InvestEU is expected to mobilise a significant amount of private and public funding in 2021-2027.

The programme is a continuation of the European Investment Programme, which operated in 2015-2020, and of the European Fund for Strategic investments (EFSI), which operated within the framework of the programme. In Finland the SME Initiative was implemented under it and it was to improve access to financing for growth companies.

The InvestEU Fund aims to mobilise more than 372 billion euros of public and private investment through an EU budget guarantee of 26.2 billion euros that backs the investment of implementing partners such as the European Investment Bank (EIB) Group and other financial institutions.

Under the InvestEU Programme, financial instruments can be implemented in different countries through two compartments. In the EU compartment, the implementing partner offers financing instruments that promote investments and support the EU's policy objectives. In the Member State compartment, financial products are targeted at the territory of a particular country.

Sustainability Guarantee in Finland

Finland implements the InvestEU Programme through a Member State compartment. Finland's Member State compartment implements a loan guarantee programme to accelerate climate and environmentally sustainable investments. The Programme introduces the Sustainability Guarantee of the European Investment Fund (EIF), which is intermediated to the Finnish market through financial institutions.

Two per cent (2 %) of the funding from the European Regional Development Fund (ERDF) from the EU Programme Innovation and Skills in Finland 2021-2027 has been allocated to the InvestEU Programme Member State compartment.  This has been seen as a good opportunity to introduce an appropriate alternative for implementing financial instruments in the EU Programme Innovation and skills in Finland 2021-2027.

In addition to the ERDF contribution, the Ministry of Economic Affairs and Employment of Finland and the Ministry of the Environment jointly finance the programme. The State of Finland funds the Member State compartment by a total of EUR 100 million. Part of the risk is borne by the European Investment Bank Group (EIB) and the intermediary financial institutions. The aim is to achieve a 7-fold leverage effect, which means that the programme would enable EUR 700 million in total loans to SMEs and housing companies.

In total, the funding under the EU Compartment and the Member State Compartment aim at a total lending portfolio of around EUR 1 billion in the European Investment Funds Sustainability Guarantee product in Finland.

Rakennerahastot.fi press release on 7.6.2024.