Work

The European Fund for Strategic Investments (EFSI): causal effects of a state lending policy

Year: 2026

Type: article

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.

Source: Journal of Economic Policy Reform

DOI: 10.1080/17487870.2026.2613781

Author: David Frayman

Institution: London School of Economics and Political Science

Language: English

Topic: Fiscal Policy and Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Funder: European Investment Bank