Council signs off simplification of InvestEU programme to boost EU competitiveness
Today, the Council gave its final green light to a revised regulation simplifying the InvestEU programme, as part of the ‘Omnibus II’ package aiming to simplify legislation in the field of EU investment programmes. The new rules will further boost EU competitiveness by increasing the EU’s investment capacity to mobilise additional public and private investments.
This simplified InvestEU programme will further support certain EU policies, notably related to the Competitiveness Compass, the Clean Industrial Deal, defence industrial policy and military mobility. The revised law will also make it easier for member states to contribute to the programme and simplify administrative requirements.
“Today is a good day for European businesses – and for the EU as a whole. Across the Union, companies are facing mounting regulatory burdens and limited access to financing. This law is a first step to reverse that course. If Europe is to stay competitive, we need less complexity, smarter rules, and stronger investments. And we must follow up with further action.”
– Marie Bjerre, Minister for European affairs of Denmark
“The Draghi report left no doubt that Europe desperately needs more investments. We live in a world, where countries such as China and the US are racing ahead. Today, we deliver just that. With this law, we will mobilise at least further €50 billion in investments via the InvestEU programme. At the same time, we are cutting red tape for companies applying for the funds and for the implementing partners. All in all, this is a good day for European competitiveness.”
– Morten Bødskov, Minister for Industry, Business and Financial Affairs of Denmark
The revised regulation improves and reinforces the existing ‘Invest EU’ programme by:
- increasing the size of the EU guarantee by €2.9 billion (from €26.2 billion to €29.1 billion), and
- facilitating the combined use of the ‘Invest EU’ guarantee with existing capacity available under three legacy programmes: the European Fund for Strategic Investment (EFSI), the Connecting Europe Facility (CEF) debt instrument and the so-called ‘InnovFin debt facility’, an initiative launched by the EIB group in support of research and innovation
The revised regulation will also reduce the administrative burden of implementing partners, financial intermediaries and final recipients, with an estimated cost saving of €350 million. In particular, the regulation includes a revised definition of SMEs and reduces the number of indicators on which implementing partners will need to report for small-size operations not exceeding €300,000.
Finally, the revised law reduces the frequency and scope of reporting obligations from implementing partners, going from semi-annual to annual reporting.
Next steps
The legislative act will be published in the EU’s official journal in the coming days and will enter into force the day after its publication.
Background
In October 2024, the European Council called on all EU institutions, member states and stakeholders, as a matter of priority, to take work forward, notably in response to the challenges identified in the reports by Enrico Letta (‘Much more than a market’) and Mario Draghi (‘The future of European competitiveness’). The Budapest declaration of 8 November 2024 subsequently called for ‘launching a simplification revolution’, by ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for SMEs. On 26 February 2025, as a follow-up to EU leaders’ call, the Commission put forward the proposal in question, as part of its ‘Omnibus II’ package. On 20 March 2025, EU leaders urged the co-legislators to take work forward on the first two Omnibus packages as a matter of priority and with a high level of ambition, with a view to finalising them as soon as possible in 2025.
