€2 Billion Boost for Central and Eastern Europe as EIF Leads New Infrastructure Investment Push

A major new financing initiative aimed at accelerating infrastructure development across Central and Eastern Europe is set to unlock at least €2 billion in new investment, following a landmark partnership announced at the Three Seas Initiative Summit in Croatia.

The European Investment Fund (EIF), alongside national promotional institutions from five EU countries, has signed a Memorandum of Understanding to launch a “fund of funds” platform designed to mobilise both public and private capital into critical infrastructure sectors across the region.

A coordinated regional investment strategy

The initiative brings together key financial institutions from:

• Poland (BGK)

• Romania (BID)

• Lithuania (ILTE)

• Croatia (HBOR)

• Slovenia (SID Banka)

Bulgaria has also pledged support, with additional countries from the Three Seas Initiative expected to join once the platform is formally launched later this year.

Participating countries are set to contribute €250 million in public funding, which the EIF will match at the level of supported infrastructure funds—creating a strong foundation to crowd in private investment and significantly scale up financing capacity.

Targeting strategic sectors for growth and resilience

The programme is designed to channel investment into sectors critical to Europe’s long-term competitiveness and sustainability, including:

• Clean energy and energy transition projects

• Transport and logistics networks

• Digital infrastructure and connectivity

• Social infrastructure such as healthcare and education

Officials say the initiative will not only address infrastructure gaps but also strengthen economic resilience, particularly in a region that plays a key role in Europe’s energy security and supply chains.

“We are creating vital preconditions for faster economic growth while strengthening Europe’s resilience,” said Marko Primorac, Vice President of the European Investment Bank Group.

Fund-of-funds model to unlock complex projects

At the core of the initiative is a fund-of-funds structure, which will invest in multiple professionally managed infrastructure funds rather than directly financing individual projects.

This model offers several advantages:

• Diversification of risk across sectors and countries

• Improved access to financing for large and complex projects

• Greater flexibility to support both established and emerging fund managers

It also enables the initiative to support local investment ecosystems, helping develop regional expertise and strengthening capital markets in Central and Eastern Europe.

Boosting local capacity and private sector participation

A key objective is to expand private sector involvement in infrastructure development—an area where investment levels in the region have historically lagged behind Western Europe.

The platform will:

• Support emerging fund managers from the region

• Improve access to long-term capital

• Encourage public-private partnerships (PPPs)

“We are bringing together national resources and the EIF’s expertise to support the next generation of infrastructure investment across the Three Seas region,” said EIF Chief Executive Marjut Falkstedt.

Building on existing regional initiatives

The new fund complements a broader ecosystem of investment vehicles under the Three Seas Initiative, including:

• The Three Seas Initiative Investment Fund

• The Three Seas Initiative Innovation Fund

Together, these platforms aim to accelerate economic convergence between Central and Eastern Europe and more developed parts of the EU, while supporting the green and digital transitions.

Economic and strategic significance

Analysts say the initiative comes at a crucial time, as Europe seeks to:

• Reduce infrastructure bottlenecks

• Strengthen regional connectivity

• Accelerate decarbonisation efforts

• Enhance resilience against geopolitical and economic shocks

By leveraging relatively modest public contributions to mobilise large-scale private investment, the programme reflects a growing trend in EU policy toward blended finance models.

Looking ahead

With the fund expected to launch later this year, attention will turn to how quickly capital can be deployed and projects brought to market.

If successful, the initiative could serve as a blueprint for future regional investment frameworks—demonstrating how coordinated public-private partnerships can unlock infrastructure development at scale.

As Central and Eastern Europe continues to modernise and integrate more deeply into the EU economy, the €2 billion investment push marks a significant step toward building a more connected, competitive, and resilient region.