European Investment Bank to Inject €70 Billion into Tech Sector, Boosting AI and Green Technologies
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[1]
EIB to allot 70 bln euros for tech sector in 2025-2027-officials
BRUSSELS, June 20 (Reuters) - The European Investment Bank is likely to announce on Friday plans to pump 70 billion euros into the development of European technology firms over the next three years, EU officials said. The programme, called Tech EU, is meant to help Europe compete with China and the United States in the race for innovative clean and digital technologies. The EIB, the biggest multilateral lender in the world with a balance sheet total of 556 billion euros, expects its own 70 bln euros to mobilise a further 250 billion euros of private cash as investors crowd into projects supported by the EIB, EU officials said. The 70 billion is to be split into 20 billion euros for equity and quasi-equity, 40 billion euros for loans and 10 billion for guarantees in 2025-2027, the officials said. The plan is to complement European Commission efforts to support higher risk ventures and innovative companies throughout their investment journey, from proof of concept to an initial public offering. The EIB wants to focus on supercomputing, artificial intelligence, digital infrastructure, critical raw materials, green industries such as offshore wind, health, security and defence technologies, robotics and advanced materials, the officials said. Reporting by Jan Strupczewski Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology
[2]
EIB to allot 70 billion euros for tech sector in 2025-2027-officials
BRUSSELS (Reuters) -The European Investment Bank is likely to announce on Friday plans to pump 70 billion euros into the development of European technology firms over the next three years, EU officials said. The programme, called Tech EU, is meant to help Europe compete with China and the United States in the race for innovative clean and digital technologies. The EIB, the biggest multilateral lender in the world with a balance sheet total of 556 billion euros, expects its own 70 bln euros to mobilise a further 250 billion euros of private cash as investors crowd into projects supported by the EIB, EU officials said. The 70 billion is to be split into 20 billion euros for equity and quasi-equity, 40 billion euros for loans and 10 billion for guarantees in 2025-2027, the officials said. The plan is to complement European Commission efforts to support higher risk ventures and innovative companies throughout their investment journey, from proof of concept to an initial public offering. The EIB wants to focus on supercomputing, artificial intelligence, digital infrastructure, critical raw materials, green industries such as offshore wind, health, security and defence technologies, robotics and advanced materials, the officials said.
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The European Investment Bank plans to allocate €70 billion to develop European technology firms from 2025 to 2027, aiming to compete with China and the US in innovative clean and digital technologies, including AI.
European Investment Bank's Ambitious Tech Investment Plan
The European Investment Bank (EIB) is set to announce a groundbreaking initiative aimed at bolstering Europe's technological competitiveness on the global stage. The program, dubbed "Tech EU," will see the EIB allocate a staggering €70 billion towards the development of European technology firms over a three-year period from 2025 to 2027 12.
Source: Market Screener
Strategic Focus and Funding Breakdown
The EIB's investment strategy is meticulously planned to cover various aspects of technological development:
- €20 billion for equity and quasi-equity
- €40 billion for loans
- €10 billion for guarantees
This diverse allocation is designed to support companies at different stages of growth and across various sectors 12.
Key Technology Sectors
The EIB has identified several critical areas for investment, including:
- Artificial Intelligence
- Supercomputing
- Digital infrastructure
- Critical raw materials
- Green industries (e.g., offshore wind)
- Health technologies
- Security and defense technologies
- Robotics
- Advanced materials
This focus demonstrates the EIB's commitment to fostering innovation in both emerging and established tech fields 12.
Catalyzing Private Investment
The EIB's initiative is expected to have a multiplier effect on private sector investment. Officials anticipate that the €70 billion commitment will mobilize an additional €250 billion in private capital. This influx of funds is predicted as investors flock to projects backed by the EIB, significantly amplifying the impact of the initial investment 12.
Complementing European Commission Efforts
Tech EU is designed to work in tandem with existing European Commission initiatives. The program aims to support high-risk ventures and innovative companies throughout their investment journey, from the initial proof of concept stage all the way to initial public offerings (IPOs) 12.
Global Competitiveness
A primary objective of the Tech EU program is to enhance Europe's competitive position in the global tech race. By focusing on clean and digital technologies, the EIB aims to help European firms compete more effectively with their counterparts in China and the United States 12.
Source: Reuters
EIB's Financial Clout
As the world's largest multilateral lender, with a balance sheet totaling €556 billion, the EIB is well-positioned to make a significant impact on the European tech landscape. This massive investment in the tech sector represents a substantial commitment of the bank's resources towards fostering innovation and economic growth 12.
The Tech EU program represents a bold step by the European Investment Bank to secure Europe's technological future. By strategically investing in key sectors and leveraging private capital, the EIB aims to create a robust ecosystem for tech innovation and development across the continent.
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