On the basis of a compromise proposal by the Hellenic Presidency, the Permanent Representatives Committee (CΟRΕPΕΡ II) reached an agreement on the Decision of the European Parliament and of the Council on the participation of the European Union in the capital increase of the European Investment Fund (EIF).

This Decision, which is expected to be adopted by the European Parliament at its Plenary sitting of 16 April, follows on a call by the December 2013 European Council to the Commission and the EIB to further enhance the EIF capacity through an increase in its capital, in the framework of restoring normal lending to the economy and, in particular to SMEs.  

The EIF capital increase aims at improving SMEs access to finance, developing SMEs loan capital markets, supporting EIF‘s role as the cornerstone investor in the venture and growth capital market and enhancing its role in microfinance and social impact investing.

According to the decision the Union is expected to purchase, 450 additional shares in the Fund, each of a nominal value of EUR 1 million.  The Union shall purchase these new shares over a four year period starting in 2014.

Α total amount of up to EUR 178 million for the period from 2014 to 2017, shall be available within the general budget of the European Union to cover the cost of the subscription and the  making use of appropriations already programmed within the Multi-annual Financial Framework 2014-2020 in order to leave unchanged the total expenditure allocated.