The European Fund for Strategic Investments (EFSI): causal effects of a state lending policy
Abstract
We examine the impact of a major lending programme of the European Investment Bank (EIB) on firm investment. Using a difference-in-differences design applied to a unique dataset of loan recipients, we find that EIB loans led to substantial additional growth in recipients’ fixed assets. This provides the first causal evidence on the additionality of large state investment bank loans made directly to firms. The findings highlight the potential for strategic public lending to advance policy agendas for sustainable economic growth.
Fields of Study & Subjects
Fiscal Policy and Economic Growth
State Capitalism and Financial Governance
Corporate Finance and Governance
Publication details
- Journal / source
- Journal of Economic Policy Reform
- Volume
- 29
- Issue
- 1
- Pages
- 71–84
- Publication date
- 2 January 2026
- Language
- EN