EU agrees long-term investment deal

The European Union has agreed a structure designed to increase investment from long-term funds into infrastructure projects across the continent.

The Parliament, Commission and Council have backed the European Long Term Investment Funds (ELTIFs) plan, which will help pension funds, insurance companies, professional and even retail investors to put money into projects throughout Europe.

“We welcome the political agreement on ELTIFs, which will provide the EU with a new tool to boost long-term investment in Europe," said Economic and Monetary Affairs Committee chair Roberto Gualtieri.

ELTIFs will channel funds only into long-term projects, which by their very nature are unlikely to return a quick profit, the EU said.

It is hoped that the initiative will increase the availability of non-banking finance for projects across Europe.

The announcement was made following the launch of European Commission President Jean-Claude Juncker’s €300bn investment plan for the region, which has been welcomed by investors.

The recently established Long-Term Infrastructure Investors Association (LTIIA) said the plan could provide a host of new investment opportunities for investors in the region.