The European Union budget and Financial instruments

In the coming years, the European Union (EU) will face a wide range of challenges, such as the digital revolution and globalisation, demographic change and social cohesion, economic convergence, migration and climate change. Is the EU budget well and fully equipped to respond? In order to address structural investment gaps and new EU policy priorities, in order to face significant internal and external challenges, there is a need to invest more within the EU and beyond. Public investment alone will not be sufficient. There is a need to crowd-in private investment. Financial instruments, such as guarantees, loans and equity are key to allow us to do more with less and leverage the EU budget to deliver on EU policy priorities