Looking Ahead
The year ahead marks the EIF’s 30-year anniversary. More than anything, this will be an opportunity to take stock of the (bold) progress made over the past 30 years but also to look at the future and calibrate our response to the challenges ahead.
In the course of the next year, we expect to be concluding a series of new mandates with Member States and also working towards developing new partnership models with a broad range of entities including multilateral development banks, national and regional authorities and national promotional institutions, as we seek to capitalise on the alignment of interests and join forces in pursuing common public policy objectives.
At the same time, Ukraine and defence will both feature in next years work plan, as we seek to provide financial support to these two areas of strategic policy importance to the EU, while our support to the scale-up ecosystem will continue to grow with the ETCI initiative moving into cruising speed.
Finally, our internal reorganisation should be further advanced as we seek to ensure an EIF that is bold, future-proof and fit for purpose.
30 years old – 30 years bold
Next year will mark the EIF’s 30-year anniversary. Celebrations will run throughout the year as we look back at what we have achieved throughout this period, but more importantly, how it has put us in a strong position to face the challenges ahead and make meaningful and impactful interventions in the markets. Looking back at 30 years bold will involve audio-visual material, a celebratory event in June, blogs and lots of data, ultimately focussing on the businesses that we have supported and the impact that we have achieved.
Ukraine
Since the outbreak of the war in Ukraine, maintaining and reinforcing trade with Ukraine has been a key priority for the EU. The availability of export credit solutions is critical to facilitating such exports. However, due to the war, private and public entities have largely withdrawn from providing such solutions. The EC approached the EIF to explore using its existing portfolio guarantee expertise to support Export Credit Agencies, with an exclusive focus on supporting small businesses in the EU exporting goods or services to Ukraine. A pilot instrument is now being developed within the InvestEU framework, with a launch expected in 2024.
InvestEU and working with the Member States
Apart from pressing ahead with the implementation of the European Commission's InvestEU programme, our work with Member States will continue with the same intensity, as we seek to achieve synergies and maximise operational efficiency by combining national and EU resources. In particular, negotiations are ongoing with Spain (RRF-guarantees), Romania and Greece (both ESIF-equity), and also with InvestNL on the Dutch Future Fund II, with signatures expected in early 2024.
Developing partnership models
In line with our Vision 2030, our strategic direction foresees a continuation of our activity as the leading catalyst for the development of a vibrant, sustainable, and inclusive European economy by supporting entrepreneurship, innovation, and the growth of small businesses. Within this strategic approach, we will work towards developing comprehensive collaboration and partnership models with multilateral development banks and public authorities at national and EU level, including national promotional institutions, with a view to strengthening our role and amplifying our impact. The decision to establish a Strategy Office reinforces this commitment to act effectively and efficiently on our core mission of providing risk financing for SMEs, supporting EU policy goals and the dynamism and resilience of the European economy.
In parallel, a reflection on the EIF’s Financial Institutions Shareholder base will take place in the near future, with a view to expanding membership to encompass financial institutions from more EU Members States.
Defence
Working with our partners, we are constantly striving to design new instruments to serve policy priorities and needs as they emerge. This past year has seen, for example, the development of a new equity mandate dedicated specifically to defence, an area that has become a strategic priority in light of the most recent geopolitical developments, much like the ETCI and REPowerEU mandates were conceived to address the scale-up gap and energy crisis respectively. With a budget of €175m, the new defence mandate to be deployed next year will aim to mobilise around €500m for European businesses developing dual use technologies to boost our defence capabilities.
Scale-up financing
The ETCI, now in full swing, is creating a positive feedback loop, fostering the emergence of large venture funds in the EU, funding some of Europe’s most promising innovative companies, helping to reduce dependence on foreign capital, and providing an attractive investment opportunity for large institutional investors. Building on this, our intention is not only to press ahead with the investment strategy and continue with fund-raising efforts, but also to expand the initiative’s outreach, providing financing solutions, in collaboration with the EIB, to selected portfolio companies needing large investment amounts. At the same time, we will be looking to find ways to further strengthen scale-up markets in Europe, in close cooperation with our shareholders and Member States.
Internal re-organisation
The EIF is undergoing a re-organisation that really started to take shape in late 2023, with effective implementation in January 2024, as we seek to adapt to the changing world around us. Throughout the coming year, we will see senior management developing new activities or taking up new roles, and a series of changes to the way we work, making the organisation fit for purpose, future-proofed and more client-oriented. In particular, the mandate origination, monitoring and reporting teams, as well as the front office teams will all come under the same roof to ensure seamless deployment from start to finish with significant efficiency gains.
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