“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.