EU Access to finance schemes for Research, Development and Innovation, including for Space-related projects / bodies

Transcription

1 EU Access to finance schemes for Research, Development and Innovation, including for Space-related projects / bodies Fostering the European Space Economy: Market conditions for the space industry Workshop in the context of the Space Strategy for Europe initiative 5 6 July Brussels Enabling Smart Financing session Jean-David MALO Head of the SMEs, Financial Instruments and State Aids Unit (RTD-B3) European Commission DG Research and Innovation

2 EU Economic context (1) EU ECONOMIC CONTEXT The European economic recovery is now in its third year. It should continue at a modest pace in 2016 despite more challenging conditions in the global economy. Against a backdrop of declining oil prices and a relatively weak external value of the euro, the economic recovery this year has been resilient and widespread across Member States. It has, however, remained slow. Labour markets are gradually improving but unemployment remains high. Euro-area real GDP is expected to rise from 1.6% in 2015 to 1.8% in 2016, and 1.9% in EU28 real GDP is expected to rise from 1.9% in 2015 to 2.0% in 2016, and 2.1% in Source: EC autumn economic forecast, Nov

3 EU Economic context (2) 3

4 EU Economic context (3) 4

5 EU Economic context (4) EU ECONOMIC POLICIES 5

6 EU Economic context (5) EU ECONOMIC POLICIES Sustaining and strengthening the recovery: boost investment pursue responsible public finances carry out structural reforms to enhance competitiveness. 6

7 Investment Plan for Europe (1) EU INVESTMENT PLAN: RATIONALE EU INVESTMENT & COMPETITIVENESS GAP HIGH LIQUIDITY IN THE MARKET PUBLIC BUDGET CONSTRAINTS EU Investment Plan EU/MS policy action + EU budget + EIB capacity to mobilise private sector funds towards strategic investments. FINANCIAL AND NON-FINANCIAL BARRIERS TO INVESTMENT 7

8 Investment Plan for Europe (2) EU INVESTMENT PLAN: 3 PILLARS 1. MOBILISING FINANCE FOR INVESTMENT 2. MAKING FINANCE REACH THE REAL ECONOMY Mobilise at least 315bn over 3 years for investment in strategic projects and access to finance via the European Fund for Strategic Investments (EFSI) within EIB/EIF Cooperation with National Promotional Banks European Investment Project Portal European Investment Advisory Hub: technical assistance 3. IMPROVED INVESTMENT ENVIRONMENT Predictability and quality of regulation Removing non-financial, regulatory barriers in key sectors within EU Single Market Structural reforms at national level 8

9 Investment Plan for Europe (3) The 315bn investment plan has the potential to bring investments back in line with historical norms Real gross fixed capital formation Baseline trend vs. historical norm vs. investment plan EU-28, in 2013 prices, bn 3,039 3,021 Historical trend / Baseline forecasts 2,940 Investment plan 2,869 GFCF historical norm, assuming an investment/gdp ratio of 21-22% 2,527 2,543 2,640 2,528 2,567 2,717 2,657 2,714 2,659 2,647 2,864 2,748 2,678 2,606 2,416 forecasts

10 Investment Plan for Europe (4) European Fund for Strategic Investments (EFSI) EFSI risk-bearing capacity 21 bn EU Budget Guarantee EIB Own resources 3x EIB / EIF financing 61 bn 5x Infrastructure & Innovation window SME window Investments value over 3 years 315 bn 10

11 Investment Plan for Europe (5) EFSI: ELIGIBLE SECTORS 1. Research, development and innovation 2. Energy (ref. Energy Union priorities) 3. Transport 4. Information and Communication Technologies 5. Environment and resource efficiency 6. Human capital, culture and health 7. Support to SMEs and mid-cap companies 11

12 Investment Plan for Europe (6): an excellent start for RDI 15

13 Investment Plan for Europe and RDI policy (1) EFSI and the RDI policy, a very promising start especially on Innovation and innovative SMEs RDI is not only a priority sector under EFSI Infrastructure and Innovation Window (IIW). It is an horizontal dimension, also present in other priority sectors of IIW, as well as in the SME Window (SMEW) At least 2/3 of approved projects under the IIW have a substantial RDI component, out of which 7 are purely RDI-related. Only for those 8 projects latter, EIB financing of 990 million is expected to trigger total investments of 3.81 billion. Under the SMEW, at least 57% of the EFSI Financing are benefitting to innovative SMEs and small midcaps 15

14 Investment Plan for Europe and RDI policy (2) but the necessity to address some important financing issues regarding RDI priorities remains (i.e. main priorities) Financing construction and operational costs of pan-european Research Infrastructures (RI) (cf ESFRI roadmap in particular), Innovation / Technology Infrastructures [IIW] Financing projects, (first-of-a-kind) demonstration pilots / deployment using new / improved technologies targeting societal challenges (including Space!), LEIT and JTIs objectives, with a particular focus on digital, KETs, health, energy, food and water, possibly too through investment platforms [IIW] Boosting access to finance for innovative SMEs and small midcaps, in particular by addressing the lack of private investments critical mass in venture capital in both early and growth stages (e.g. Equity Investment Platform, Pan European VC FoF, ) in view in particular to support more disruptive market-creating innovation [SMEW] 16

15 + SME Initiative (Uncapped Guarantee and Securitisation schemes) Horizon 2020 InnovFin (1) Complementarity between EFSI and H2020 InnovFin FI to be continued and strengthened (1/3) 17

16 Horizon 2020 InnovFin (2) Complementarity between EFSI and H2020 InnovFin FI to be continued and strengthened (2/3) Already done EFSI frontloading on InnovFin SME Guarantee [SMEW] next to be turned into a top-up Currently explored / developed (1/2) Revision of InnovFin SME Venture Capital into a new product based on a risk-sharing arrangement between the Horizon 2020 ARF budget, EFSI (SME Window) and EIB Group commitments, in the context of the forthcoming Equity Investment Platform [SMEW], with: a specific action for (a) Pan-European VC Fund-of- Funds Inclusion of sub-facilities supporting Business Angels, Technology Transfer and other FoF in particular 18

17 Horizon 2020 InnovFin (3) Complementarity between EFSI and H2020 InnovFin FI to be continued and strengthened (3/3) Currently explored / developed (2/2) Launch of a new Uncapped Guarantee for Unsecured Loans to R&I-driven SMEs and Small Midcaps, taking the form of a new product based on risk-sharing between the Horizon 2020 ARF budget, EFSI (SMEW) and EIB Group commitments, complementing / expanding InnovFin SME Guarantee. [SMEW] Scaling-up InnovFin Thematic Finance pilots (i.e. InnovFin Infectious Diseases, InnovFin Energy Demonstration Projects) by possibly turning them into Investment Platforms. [IIW] (link also with Mission Innovation) Running work on Circular Economy Investment Platform, as well as on Water Solutions (InnovFin Thematic product / Investment Platform?) Blending product for even riskier product/project? 19

18 THANK YOU FOR YOUR ATTENTION MORE INFORMATION AVAILABLE AT: g=fr #InvestEU 18