ECOFIN - Economic and Financial Affairs Council

09/23/2025 | Press release | Distributed by Public on 09/23/2025 13:13

InvestEU: Council and Parliament agree to make the programme easier and more efficient 21:02 Investment simplification: Council agrees position on the ‘Invest EU’ regulation to[...]

The Council presidency and European Parliament's negotiators reached today a provisional agreement to simplify the InvestEU programme to further boost EU competitiveness. The deal will increase the EU's investment capacity to mobilise additional public and private investments.

This simplified InvestEU programme will further support certain EU policies, notably related to the Competitiveness Compass, the Clean Industrial Deal, defence industrial policy and military mobility. The revised legislation also seeks to make it easier for member states to contribute to the programme and simplify administrative requirements.

Today is a good day for European businesses - and for the EU as a whole. Across the Union, companies are facing mounting regulatory burdens and limited access to financing. This agreement is a necessary first step to reverse that course. If Europe is to stay competitive, we need less complexity, smarter rules, and stronger investments. And we must follow up with further action.

Marie Bjerre, Minister for European affairs of Denmark

The Draghi report left no doubt that Europe desperately needs more investments. We live in a world, where countries such as China and the US are racing ahead. Today, we deliver just that. With this deal, we will mobilise at least further €50 billion in investments via the InvestEU programme. At the same time, we are cutting red tape for companies applying for the funds and for the implementing partners. All in all, this is a good day for European competitiveness.

Morten Bødskov, Minister for Industry, Business and Financial Affairs

The draft regulation forms part of the 'Omnibus II' package to simplify legislation in the field of EU investment programmes.

Boosting the EU guarantee with an extra €2.9 billion

The provisional agreement reached today improves and reinforces the existing 'Invest EU' programme by:

  • increasing the size of the EU guarantee by €2.9 billion (from €26.2 billion to €29.1 billion), and
  • facilitating the combined use of the 'Invest EU' guarantee with existing capacity available under three legacy programmes: the European Fund for Strategic Investment (EFSI), the Connecting Europe Facility (CEF) debt instrument and the so-called 'InnovFin debt facility', an initiative launched by the EIB group in support of research and innovation

Furthermore, the revised regulation is expected to increase the attractiveness of the 'Invest EU' member state compartment, which focuses on specific national priorities.

Simplification push

The revised regulation will also reduce the administrative burden of implementing partners, financial intermediaries and final recipients, with an estimated cost saving of about €350 million. In particular, the provisional agreement revises the definition of SMEs and reduces the number of indicators on which implementing partners will need to report for small-size operations not exceeding €300,000. It also reduces the frequency and scope of reporting obligations from implementing partners, going from semi-annual to annual reporting.

Next steps

Today's provisional agreement must be endorsed by the co-legislators before the formal adoption of the legislative act.

Background

In October 2024, the European Council called on all EU institutions, member states and stakeholders, as a matter of priority, to take work forward, notably in response to the challenges identified in the reports by Enrico Letta ('Much more than a market') and Mario Draghi ('The future of European competitiveness'). The Budapest declaration of 8 November 2024 subsequently called for 'launching a simplification revolution', by ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for SMEs. On 26 February 2025, as a follow-up to EU leaders' call, the Commission put forward the proposal in question, as part of its 'Omnibus II' package. On 20 March 2025, EU leaders urged the co-legislators to take work forward on the first two Omnibus packages as a matter of priority and with a high level of ambition, with a view to finalising them as soon as possible in 2025.

  • Regulation as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements, Council mandate, 14 April 2025
  • Regulation as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements, Commission proposal, 26 February 2025
  • Invest EU programme, Commission background information
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