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European Commission approves Dutch public support for setting up new development bank

The European Commission has given its approval under the EU State aid rules for Dutch plans to set up a new development bank, ‘Invest-NL’. The Act on the establishment of Invest-NL was approved by the Dutch Parliament on 21 May 2019 and is currently pending in the Dutch Senate.

The State will hold 100% of the bank’s shares and will provide the bank with a capital of €1,7 billion in several instalments. Invest-NL will focus on improving access to finance for Dutch small and medium-sized enterprises (SMEs) and facilitating activities of undertakings in the context of large transitions in society (such as the transition to cleaner energy). Furthermore, the bank will support the participation of Dutch companies in European investment funds, such as investEU.

The Commission found that the setting up of Invest-NL is an appropriate and proportionate measure to provide additional financing to companies that remain underfinanced because of market failures. Invest-NL will implement safeguards to ensure that the State’s support does not negatively affect private investors. On this basis, the Commission concluded that the measure is in line with EU State aid rules.

Press Release European Commission