EUROPE NEEDS GREATER PUBLIC FINANCING CAPACITY TO CLOSE ITS INVESTMENT GAPS

Europe must scale up public investment for innovation, strategic infrastructure and the green and digital transitions, says the European Economic and Social Committee (EESC). It calls for greater investment capacity for the European Investment Bank (EIB) Group and a stronger role for national promotional banks. 

Europe faces major investment gaps in clean industry, electricity grids, digital infrastructure and innovative companies. The EESC says public investment institutions need clearer mandates and stronger tools to support projects that markets cannot finance adequately, and to strengthen Europe's productive base. 

'Europe cannot build its competitiveness on fragmented funding and short-term finance. We need stronger public investors able to provide patient capital where markets fall short, helping innovative firms scale up and deliver the infrastructure Europe needs for its green and digital future,' said Philip von Brockdorff, rapporteur for the opinion. 

Funding for the EIB Group under the next EU long-term budget should rise faster than inflation. The European Investment Fund and programmes such as TechEU should provide more equity, hybrid capital and venture debt to innovative firms, while direct long-term lending and co-investment should be expanded for strategic infrastructure. 

Public support should unlock investment constrained by high risks, long maturities or returns that markets do not fully recognise. Success should be measured by funding gaps closed, financing conditions improved and public value created, not only by private capital mobilised. Priorities include energy grids, clean industry, public transport, technology infrastructure, affordable housing and climate and water resilience. 

The EIB Group, the European Commission and national promotional banks should work as a more integrated financing system, with shared priorities and clear responsibilities. National promotional banks should be closely involved in national and regional partnership plans and in governing the proposed European Competitiveness Fund for 2028–2034. 

EU financing should be easier for SMEs and start-ups to access. The EESC proposes digital-first procedures, standard templates, self-declarations where possible, real-time application tracking and a single SME helpdesk in each Member State. It also stresses that excellence-based funding for basic research under Horizon Europe must remain distinct from support for commercial research. 

The EESC calls for stronger public investors, simpler access to EU funding and coordinated action to channel capital into projects that support Europe's competitiveness, resilience and sustainable growth. (tk)