The European parliament has adopted an overhaul of the rules governing European Long-Term Investment Funds (ELTIFs).

ECR Rapporteur Michiel Hoogeveen successfully negotiated to make the framework more flexible and business-friendly. In the future, it will be easier for retail investors to invest their savings in a well-diversified asset class, subject to appropriate investor protection safeguards. EU companies will have better access to more stable and diversified long-term funding, benefiting the EU economy as a whole. “It seems that we have brought the revision of the rules for European long-term investment funds to a successful conclusion. This is good news for the European economy as it could lead to an additional €100 billion of private financing over the next five years,” Hoogeveen said.

Presenting the report in yesterday’s debate, Hoogeven explained:

“This is an important day that will mark a new milestone for the common market; a new building block to a genuine Capital Markets Union.

“European Long-Term Investment Funds – or ELTIFs – provide a stable and predictable source of financing for long-term projects. I am talking about investments in transport, energy and telecoms infrastructure, such as bridges, tunnels, electricity transmission lines, gas storage facilities, power plants and fibre-optic cables. But also social infrastructure, such as hospitals, retirement homes and social housing. All of these examples and projects are direct beneficiaries of the ELTIF reform and the tens and hundreds of billions of euros that can now flow to these uses.

“The European Common market has shown that free peoples and free countries can work together, freely and voluntarily, in the areas of trade and economic development to improve the lives of our citizens.

“The legal framework for ELTIFs was launched in 2015 to channel private money into long-term investments in areas such as infrastructure projects, real estate and SMEs, but so far only a limited number of funds have been launched under the legislation.”