Briefing 
 

EU plan to tackle root causes of migration  

An EU scheme aiming to mobilise €44 billion in private investment in Africa will be put to the vote on Thursday, if the responsible committees approve it beforehand.

As part of the European External Investment Plan, the European Fund for Sustainable Development (EFSD) would encourage €44 billion in private sector investments in fragile states by offering a combination of grants, loans and financial guarantees worth €3.3 billion to boost jobs, growth and stability, thus addressing the root causes of migration.


In recent talks on the operating rules of the EFSD, MEPs persuaded EU ministers that the scheme needs to focus on poverty, jobs, climate change and small enterprises and support only responsible businesses complying with international tax transparency standards.

If the Foreign Affairs, Development and Budget committees approve the agreement on 3 July, a plenary vote will take place on 6 July in Strasbourg.


Quick facts:

EFSD resources come from the mid-term review of the MFF 2014-2020 and the European Development Fund (EDF) reserve. The new fund will include two regional platforms: one for Africa and the other for the EU Neighbourhood. It will function as a “one-stop-shop”, offering access to existing EU blending facilities (when EU grants are combined with loans or equity from public and private financiers), coupled with a new, additional guarantee for public and private investors. The EFSD Guarantee is expected to have a cash provision of €750 million including €350 million from the EU budget and €400 million from the EDF. The EFSD will also combine resources from two existing blending facilities – €2.6 billion from the Neighbourhood Investment Facility and Africa Investment Facility.


Procedure: Ordinary legislative procedure

2016/0281(COD)

Debate: Wednesday, 5 July

Vote: Thursday, 6 July