In 2016 the European economy has started to recover slowly from the large financial crisis that spread over the continent back in 2008. However, the process of recovery is still far from what we all would like to see, the Head of the European Commission Representation in Bulgaria Ognyan Zlatev said during the presentation of the European Investment Plan, also known as the Juncker Plan. This plan offers systematic approach towards the solution of the problems related to the growth of the European Economy, Mr. Ognyan Zlatev said and added:

“The lack of any regional distribution of the available funds means that the most active companies, which are able to offer the best projects, would benefit the most from the Juncker Investment Plan. That is why the European Commission joined efforts with the group of the European Investment Bank and with Bulgaria’s cabinet, in order to provide the best conditions for the country’s public and private sector, so they can benefit from the opportunities provided by the European Investment Plan.”

According to Bulgaria’s Deputy Minister of Finance Karina Karaivanova, the main purpose of the European Investment Plan is to promote investments from the private sector:

“The Juncker Plan was established mainly with the purpose to boost investments in the private sector, because after the debt and financial crisis Europe’s public sector needs to consolidate and reduce the level of debt and deficit. The level of public investments has been decreasing, which is due to the adherence to the stability and growth pact. As a result, Europe has started to encourage and promote private investments. ”

There are three main obstacles which can be outlined with regard to the investments made in the private sector. Firstly, investors can’t take the whole risk of the existing projects which need financing. The second obstacle is related to the hard access to financing. Last, but not least, investments are hindered by some regulatory and administrative obstacles. Practically, the Juncker Plan is consistent with the main problems of the investors.

The European Investment Plan is based on three main pillars. The first one is linked with the establishment of the European Fund for Strategic Investments, which is based on a warranty provided by the European Commission. The resource comes from the budget of the European Union and the European Investment Bank and amounts to EUR 21 billion. It aims at attracting private investments in new projects to the tune of over EUR 315 billion. So far, projects from 22 EU member states, including Bulgaria, have been approved. The second pillar of Juncker Plan includes the European Investment Advisory Hub and the European Investment Project Portal.

“The main goal of the European Investment Advisory Hub is to help various entrepreneurs prepare their technical projects in a quick and appropriate manner. The EIAH is in fact a consulting service, which helps businessmen deal with the complex tasks related to the project management and financing such as the preparation of tender documentation and the management of the project activities in strict succession”, Vassil Georgiev, who works as Chief Economist at the Directorate General Economic and Financial Affairs at the EC said.

The third pillar of Juncker Plan aims at addressing the hindrances to the potential investments and is related to the development of a road map aimed at abolishing specific regulations in given sectors, which stand in the way of the investors.

The Bulgarian Development Bank joined the initiative and is ready to co-finance projects approved by the European Fund for Strategic Investments to the tune of EUR 100 million. The Bulgarian Ministry of Finance provides on its web site full information about the Juncker Investment Plan and its three pillars. It also sends incomplete projects to the Bulgarian Development Bank, which, as a result of a memorandum signed with the European Investment Bank, provides consultations to the applicants and informs them about the stage of development of their projects. It also assesses the chances of given projects to receive financing within the frameworks of the European Fund for Strategic Investments.

English version: Kostadin Atanasov