EU infrastructure funding risks ‘crowding out' insurers

Strategic fund could force down yields, says Insurance Europe

infrastructure-money

An initiative from the European Commission to encourage long-term funding for infrastructure could inhibit investment from insurers rather than encourage them, says an industry association.

The European Fund for Strategic Investment (ESFI), created as part of a €315 billion European Commission investment plan announced last year, risks driving down yields on infrastructure debt and discouraging private investors, according to Insurance Europe.

Despite seeing the benefits of developing a project