EU launches new fund to boost investment

Singapore

THE European Union (EU) has launched a new institution to kickstart flagging investment in the 28-member grouping. Called the European Fund for Strategic Investment (EFSI), the institution will invest or guarantee investments to the tune of about 20 billion euros (S$31.7 billion) a year for three years. In turn, this is expected to catalyse another 250 billion euros of investment in the EU from the private sector.

Explaining the rationale for the EFSI at a briefing on Friday, the vice-president of the European Commission Jyrki Katainen said that investment in the EU is running about 15 per cent below trend in aggregate - although it is lagging even further in certain member states.