Today, the Council adopted a redesigned regulatory framework for European long-term investment funds (ELTIF) which makes these types of investment funds more attractive.
This effort is part of the capital markets union (CMU), a plan to create a single market for capital in order to get investments and savings flowing across all member states for the benefit of citizens, businesses and investors. ELTIFs are the only type of funds dedicated to long-term investments which can be distributed on a cross-border basis to both professional and retail investors. Since ELTIFs are designed to channel long-term investments, they are well placed to help finance the green and digital transitions.
I am very pleased that we are delivering on our promise to channel more financing to companies and projects which are actively working to boost our economies in the long run, in particular to achieve the green and digital transitions. Today we removed a number of regulatory obstacles for European long-term investment funds. It is becoming easier to invest in attractive, innovative European projects and companies, including small and medium sized companies. This comes as good news for investors who are looking for a wider choice among sustainable and climate-friendly investment opportunities.
Elisabeth Svantesson, Minister for Finance of Sweden
The Commission presented its capital markets union package including the ELTIF proposal on 25 November 2021. The Council adopted its position on the proposal on 24 May 2022. Negotiations with the European Parliament ended in agreement on 19 October 2022. The European Parliament voted on the text on 15 February 2023. Today’s formal adoption in the Council is the final step in the legislative process.