Proposal for a Regulation on the establishment of a European Investment Stabilisation Function

Author (Corporate)
Series Details COM (2018) 387
Publication Date 31/05/2018
Content Type


Legislative proposal adopted by the European Commission setting up a European Investment Stabilisation Function (EISF), which aims to complement the existing instruments at national and EU level to absorb large asymetric shocks in the Eurozone and countries participating in the European Exchange Rate Mechanism (ERM II).

Further information:

The draft law was adopted by the Commission on 31 May 2018. Under this proposal, the Commission is empowered to grant financial assistance to Member States which are faced with a large asymmetric shock, by contracting borrowings on the financial markets or with financial actors, with a view to on-lend such proceeds in support of the Member State concerned in maintaining eligible public investment. Subject to strict criteria of sound macroeconomic and fiscal policies, loans of up to €30 billion could be rapidly mobilised, together with an interest rate subsidy to cover their cost.

The proposal was put forward in the framework of the discussions on the Multiannual Financial Framework (MFF) for the period 2021-2027. It is also part of the process to strengthen and deepen the EU's Economic and Monetary Union.

Source Link
Related Links
Commentary and Analysis
CEPS: Commentary, May 2018: Should the EU budget have a stabilisation function?
Bruegel: Blog, May 2018: New EMU stabilisation tool within the MFF will have minimal impact without deeper EU budget reform
EPRS: Briefing, January 2019: European Investment Stabilisation Function (EISF)

EurActiv, 18.06.18: Commission’s ‘stabilisation function’ very modest, says eurozone fiscal sheriff
EurActiv, 01.06.18: Unemployment peaks to trigger new investment shield

European Commission: Press Release, 31.05.18: A Reform Support Programme and an Investment Stabilisation Function to strengthen Europe's Economic and Monetary Union
European Commission: Fact Sheet: The Reform Support Programme and the European Investment Stabilisation Function explained
European Commission: Commissioner Moscovici's remarks on proposals for a Reform Support Programme and an Investment Stabilisation Function
European Commission: Vice-President Valdis Dombrovskis' remarks at the press conference on the Economic and Monetary Union programmes
EUR-Lex: SWD(2018)298: Executive summary of the impact assessment
EUR-Lex: SWD(2018)297: Impact assessment
EP: Legislative Train: Establishment of a European Investment Stabilisation Function (EISF)
European Parliament: Legislative Observatory: Procedure file on a European Investment Stabilisation Function 2021-2027
UK Parliament: House of Commons: European Scrutiny Select Committee: Eurozone Investment Stabilisation Function (EISF)

Subject Categories
Subject Tags
International Organisations
Record URL