CYPRUS: €45 mln from EFSI ‘Juncker plan’

Financing for Cyprus under the European Fund for Strategic Investments (EFSI), known as the ‘Juncker plan’, totalled EUR 45 mln by November and is set to trigger EUR 81 mln in additional investments, the European Commission said, after MEPs voted to prolong the programme until 2020.

The European Commission, through its Vice President Jurki Katainen called upon Cyprus to work more to benefit from the EFSI, since it ranks second to last among the EU member states. He also said that many sectors in Cyprus can benefit from the Fund, such as tourism, energy, renewable energy, as well as research development and innovation.

The European Parliament voted to extend the programme until 2020 in order to finance more projects that promise the best economic and social returns in the EU member states.

EFSI aims to mobilise EUR 500 bln to redress market failures and investment gaps, by funding innovative projects with a high-risk profile which would not otherwise be supported. According to the agreement between the Parliament and the member states, investments should also foster job creation, particularly for young people and economically weaker EU regions.

The EFSI, implemented by European Investment Bank, was established in 2015 for an initial period of three years, with the aim of mobilising at least EUR 315 bln of investments in the real economy. The European Commission proposed to extend the fund’s duration until the end of the EU’s current Multiannual Financial Framework (MFF) in December 2020, with a view to reaching an investment target of EUR 500 bln.