ANNOUNCEMENT 19 May 2016In May 2016, the government of Spain announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
EFSI Information Sheet about the project. Available at
European Commission (20 July 2015): The Investment Plan for Europe: Questions and Answers. Available at
EIB: European Fund for Strategic Investments - Questions and Answers. Available at http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
On 19 May 2016, the European Investment Bank agreed to provide 125 million EUR for the Spanish fund manager Instituto de Crédito Oficial (ICO), as part of the European Fund for Strategic Investments (henceforth: EFSI).
According to the EFSI information sheet, the investment support will be used to "fund Fond-ICO Global's participations in selected private growth funds in Spain for growth and expansion finance of private companies in the EU".
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions."
Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.