"Today's agreement means that we are delivering on one of our top priorities, in line with the Bratislava roadmap agreed in September. It is also a crucialstep in the right direction", he said. "I am confident that a bigger, smarter and more effective EFSI supported by a well-functioning capital markets union is aright path to take." 

Talks will start with the European Parliament once the Parliament has agreed its negotiating stance. 

The Commission considers that the EFSI is achieving its objectives and that maintaining a scheme to support investments is warranted. It notes that three evaluations of the EFSI, including an external, independent evaluation, concur on its success so far and on the need to reinforce the initiative. 

Investment conditions have improved in the EU since the investment plan was launched. Economic confidence is returning and the plan is already delivering results. Established in mid-2015, the EFSI is on track for attaining its €315 billion target in additional investments by mid-2018. 

For SMEs, it is delivering well beyond expectations. Projects approved by November 2016 are expected to mobilise €154 billion in total investments, covering 27 member states, and to support over 376 000 SMEs. 

Main changes 

The Council agreed that efforts should be continued and private investment should be attracted to the maximum extent possible. 

The compromise provides for: 

•  an extension to the lifespan of the EFSI until 2020; 
•  an increase in the investment target to €500 billion; 
•  an increase in the EU budget guarantee to €26 billion (of which €16 billion will be available for guarantee calls until mid-2018);
•  an increase in the European Investment Bank's contribution to €7.5 billion (from €5 billion currently). 

Full press release