EIB Group and European Commission Simplify State Aid Rules to Support Europe's Clean Industry

Strategic Insights -

The European Investment Bank (EIB) Group and the European Commission have agreed to simplify State aid rules in relation to EIB Group financing, aiming to further facilitate support for Europe's industry and economic competitiveness. This agreement confirms that financing by the EIB Group from its own resources falls outside the scope of EU State aid rules. The accord also eases conditions for joint investments by Member States and the EIB Group, speeding up the deployment of the InvestEU programme. The agreement takes place within the broader European Union framework to prevent governmental support for companies from distorting markets. The accord reinforces the EIB Group's ability to channel investments that advance EU policy goals, such as the Clean Industrial Deal, while safeguarding the European single market.

Key Takeaways:

  • The EIB Group-Commission accord on State aid rules has three main elements: (1) EIB Group financing from its own resources falls outside the scope of state-aid rules, (2) reduced private-sector participation requirements for joint investments with Member States, and (3) eased conditions for joint investments by Member States and the EIB Group.
  • Important Projects of Common European Interest (IPCEIs) are critical to Europe's strategic autonomy in areas like clean technologies and advanced manufacturing. Under the agreement, EIB Group financing will not count toward State aid thresholds for IPCEIs.
  • The accord facilitates co-investments by Member States and the EIB Group, with reduced private-sector participation requirements for joint investments.
  • The agreement accelerates the deployment of the InvestEU programme, paving the way for a new equity co-investment product and a review of the guarantee agreement to streamline State aid provisions.
  • The EIB Group boosts the Clean Industrial Deal through TechEU, the EU's largest financing programme to date in support of innovation, aiming to attract talent, capital, and investment in Europe.
  • New instruments include a €1.5 billion counter-guarantee package for grid component manufacturers, a €500 million pilot programme to support corporate power purchase agreements, and a €250 million CleantechEU guarantee scheme.

Statistics:

  • €1.5 billion package to provide counter-guarantees through partner banks to grid component manufacturers.
  • €500 million pilot programme to support the take-up of corporate power purchase agreements (PPAs).
  • €250 million CleantechEU guarantee scheme.
  • €1.5 billion top-up to a successful EIB programme supporting European wind turbine and component manufacturers.
  • €5 billion mobilised by the EIB Group in investments for innovation, sustainability, competitiveness, and social inclusion under the InvestEU programme.

Sources:

  • EIB Group and European Commission simplify application of State Aid rules to support Europe's clean industry and hold roundtable with business leaders (https://www.eib.org/press/all/eib-group-and-european-commission-simplify-application-of-state-aid-rules-to-support-europes-clean-industry-and-hold-roundtable-with-business-leaders)
  • European Investment Bank (EIB) Group (https://www.eib.org/)
  • European Commission (https://ec.europa.eu/)