The opinion on the budget for 2015 of countries Eurozone is delayed to Friday
BRUSSELS, 25 (IRIN)
The European Commission adopted today its announced plan for public-private 300.000 million investment in three years, which aims to revive the European economy and avoid a third recession. Its president, Jean-Claude Juncker, presented the initiative to the plenary of the Parliament on Wednesday morning.
Since the beginning of the financial crisis, investment has fallen on average about 20% in the EU. The lack of investment is one of the reasons that explains, as European leaders, the weak recovery in Europe.
Juncker announced its plan of 300,000 million euros during his inaugural speech to the European Parliament the last July to win the support of the Socialists and decided to accelerate to the worsening economic situation in the eurozone. The money will be invested in projects of European interest that are mature in areas such as transport, energy and the digital economy. To identify them, and was created a working group which are represented capitals.
As for the financing of this plan, the President of the Commission has made clear that it should not generate more deficits and debt Member States, so most of the money will have to come from the private sector, has said Juncker. They also confirmed that the European Investment Bank (EIB) will participate and that the EU budget could be used as collateral.
To implement this investment of 300,000 million, Brussels will create a new European fund to be fed only 20,000 million euros. This capital will come from money already provided in the EU budget and EIB. In addition, national public banks will be invited, as the ICO in Spain, to make additional contributions, as reported by the French newspaper Les Echos’.
With this fund is to finance riskier projects currently assumes the EIB. To this end, private investors provide a guarantee on the first losses of funded projects.
However, Juncker plan has raised questions as before approval. Thus, the French Finance Minister Emmanuel Macron, said in an interview with the Financial Times that the 20,000 million euros capital may be insufficient to mobilize 300,000 million investment. To Macron, you would need at least 60,000 to 80,000 million capital.
The plan will be discussed in the coming weeks by the finance ministers of the 28 and is expected to be endorsed by the Heads of State and Government at the summit on 18 and 19 December.
The EU has already launched in 2012 an investment plan of 130,000 million euros proposed by French President François Hollande, but its effects on the economy were invalid.
EXTENSION OF FOUR MONTHS FOR FRANCE
The commissaires also discuss Tuesday the opinions on the budgets for 2015 of the eurozone countries, with France and Italy in the spotlight. In both countries, the EU executive intends to ask more cuts to meet deficit targets. However, the publication of opinions Brussels has been delayed until next Friday.
According to newspaper ‘Le Figaro’, the Commission has decided to postpone four months deciding whether to give two extra years Paris to correct its excessive deficit up to 2017 as requested by the Government of François Hollande, or if instead advances in the sanctioning process with a fine that could reach 0.2% of GDP (4,000 million euros) .
The goal is to give a last chance for France to accelerate the reforms promised to improve the competitiveness of its economy prior to the sanctions.
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