The European Commission and the European Investment Fund launch a Skills & Education Guarantee Pilot in view of overcoming the difficult economic situation.
The Skills & Education Guarantee Pilot (S&E Pilot) is a new pilot guarantee facility to improve access to finance for individuals and organisations looking to invest in skills and education in the European Union (EU). In the pilot phase, the EU provides a guarantee of up to EUR 50 million from the European Fund for Strategic Investments (EFSI), with the aim to mobilise investment of more than EUR 200 million in total. Interested financing institutions or providers of education and training (such as universities or vocational training centres) that are located in EU Member States can apply to become financial intermediaries by 31 October 2020 to participate in the scheme (open Call for Expressions of Interest published by the European Investment Fund.
Investments in skills and education are particularly important considering the challenging economic situation the COVID-19 pandemic is currently causing for individuals and enterprises. In the end, the pilot scheme should support – via the intermediaries – three categories of beneficiaries: 1) students and learners, 2) enterprises investing in skills, and 3) suppliers of education, training, skills and related services (including those with a preschool focus). Regarding students, the S&E Pilot will also support students and learners moving to another EU Member State to pursue studies. Eligible students and businesses will be able to access different types of finance (e.g. loans, deferred payments, income-linked loans, etc.). The funding can amount up to EUR 30’000 for students and up to EUR 2’000’000 for enterprises and education suppliers.
The initiative should become a mainstream European financial instrument under the next EU multiannual financial framework 2021–2027. The successor of ESFI post-2020 is the InvestEU programme, which will include social investment and skills as one of its four policy windows.