During today’s (25.06.2014) Coreper meeting, Ambassadors of the 28 EU Member States agreed on a General Approach on the European Long-Term Investment Funds (ELTIFs) Regulation. This agreement constitutes the negotiating mandate for the incoming Italian Presidency to conduct trilogues with the European Parliament.
One of the main objectives of the Regulation is to establish harmonised rules of functioning and supervision of the ELTIFs, so that it is possible to promote an ELTIF which has been created and authorised in one Member State to other Member States (passporting), enhancing thus the efficiency and functioning of the internal market.
Welcoming the agreement on the ELTIFs, the President of the ECOFIN Gikas Hardouvelis said:
“In recent years, the lack of liquidity –and the associated contraction of investment - has been instrumental for the unfolding of the crisis. Finding new alternative sources for long-term financing, such as the current agreement, is a very crucial parameter for putting the European economy back to the path of growth. Long Term Investment Funds will have an important role to play in the development of infrastructure projects and other growth - enhancing projects with significant added value for the EU citizens. The new tool will also be important for the financing of small and medium sized enterprises, many of which have limited alternative sources of finance. This benefits the real economy, providing a predictable and stable flow of credit to businesses and thus creating more jobs.”