UK SMEs and infrastructure projects to benefit from EU financing

The Chancellor, George Osborne, has announced that the government, in collaboration with the European Investment Bank (EIB), is to help give more support to SMEs and infrastructure projects, making sure they receive the financing they require to create jobs and boost the UK economy.

Through close working relationships with the EIB and the European Investment Fund (EIF), the government will ensure that financing from the European Fund for Strategic Investment (EFSI) will be available to as many UK projects and SMEs as possible.

The EFSI was approved by European leaders last month and will use €8Bn from the EU budget to gain investment from the private sector in infrastructure and SMEs across the European Union.

Current market failures will be focused upon by addressing market gaps and up to €315Bn of private investment in the EU economy will be made over the next three years.

Mr Osborne stated that the government, alongside the EIB, would contribute £6Bn to co-finance the EFSI infrastructure schemes in the UK and also that that the UK has stepped up its bilateral engagement with EIB, and will soon sign a Memorandum of Understanding with the EIB to make sure the UK take full advantage of the benefits of the EFSI and wider EIB financing opportunities.

The Chancellor also announced that the British Business Bank will sign a Memorandum of Understanding with the EIF so they are in a position to collaborate and offer financial support to potential high growth UK SMEs.

The Chancellor said: “The UK is determined to make the most of the European Fund for Strategic Investment, which will see EU funds being spent in a way that will promote growth and create jobs in the UK and across Europe.

“A key part of the government’s long term plan is to ensure that infrastructure projects and SMEs across the UK have access to the necessary finance.

“Today’s announcement which will see us join up with the European Investment Bank brings us one step closer to making this happen.”

European Investment Bank Vice President, Jonathan Taylor said: “The new and now operational EFSI initiative provides an opportunity for the European Investment Bank to strengthen support for long term investment in a number of sectors across the UK.

“Last year was a record year for the EIB in the UK with £6 billion of EIB loans backing more than £18 billion of investment. EFSI will build on our strong track record supporting world class transport, energy, water, education and innovation investment.”

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