The preliminary analysis on InvestEU highlights key concerns regarding transparency in funding allocation, the exclusion of projects affecting vulnerable groups, and potential refinancing conditions. Ethical finance providers and Microfinance Institutions (MFIs) play a crucial role in supporting social enterprises and unbanked organizations, aligning with the goals of InvestEU and the European Pillar of Social Rights. However, current budget allocations are lower than in previous programming periods, posing challenges to service continuity and financial stability. Additionally, concerns are raised about the depletion of the social investment window by 2024.

The analysis suggests reviewing allocation principles to better address the needs of social enterprises and MFIs, reassessing the provisioning level to optimize fund usage, and reallocating unused resources from the previous EaSI GFI program. Furthermore, insufficient financial support from the European Investment Fund (EIF) limits ethical finance providers’ capacity to meet the needs of vulnerable groups. These challenges risk undermining the InvestEU program’s goals and the effectiveness of public policies aimed at social inclusion. The report recommends exploring alternative funding mechanisms to enhance budget availability for social economy actors.