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European Investment Stabilisation Function (EISF) [EU Legislation in Progress]

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The idea behind the Commission’s proposed European Investment Stabilisation Function is to use dedicated financial means from the EU budget to help Member States stabilise their economies in the event of a major asymmetric shock. The Commission would borrow on the financial markets and then lend to the country concerned, which would use the money to finance public investment. Once the crisis was over, the Member State would reimburse the debt. The Commission hopes the other Member States would agree to subsidise the interest payments incurred. The function would be limited to euro-area countries, but those that have entered the exchange rate mechanism II (ERM II) might also benefit. The lending would be quasi automatic once statistical data showed an exceptional and steep rise in unemployment. The dossier has met with considerable opposition at Council level.


Proposal for a regulation of the European Parliament and of the Council on the establishment of a European Investment Stabilisation Function
Committees responsible: Economic and Monetary Affairs (ECON) and Budgets (BUDG) (jointly under Rule 55) COM(2018) 387 31.5.2018
Rapporteur: Pervenche Berès (S&D, France) and Reimer Böge (EPP, Germany) 2018/0212(COD)
Shadow rapporteurs: Manuel dos Santos (S&D, Portugal)
Bernd Kölmel (ECR, Germany)
Bernd Lucke (ECR, Germany)
Urmas Paet (ALDE, Estonia)
Ramon Tremosa i Balcells (ALDE, Spain)
Liadh Ní Riada (GUE/NGL, Ireland)
Martin Schirdewan (GUE/NGL, Germany)
Philippe Lamberts (Greens/EFA, Belgium)
Jordi Solé (Greens/EFA, Spain)
Marco Valli (EFDD, Italy)
Marco Zanni (ENF, Italy)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Vote in committee
EU Legislation in progress timeline


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