Presentation of Juncker’s Investment Plan: Can 315 billion euros save the EU?

Jean-Claude Juncker, President of the EC, and several Members of the College of the EC participated in the EP plenary session which focused on the presentation of the creation of a new EU strategic investment plan. He looks here too confident. Will he make the ship turn? (EC Audiovisual Services (26/11/2014)

Jean-Claude Juncker, President of the EC, and several Members of the College of the EC participated in the EP plenary session which focused on the presentation of the creation of a new EU strategic investment plan. He looks here too confident. Will he make the ship turn? (EC Audiovisual Services (26/11/2014)

Jean Claude Junker, the president of the European Commission (EC), announced details of his 315 billion euros promising investment plan two days ago in Strasbourg. This three year project will use money from EU institutions in order to create a fund that will motivate investors to bring back their money in Europe and increase growth and job opportunities.

Investments in Europe are still sluggish

According to the EC’s estimations, it is shown that the investment climate in Europe has weakened compared to the pre-crisis figures. In particular, 2013 total EU investments have decreased by 430 billion euros in comparison to 2007. This causes problems to the real economy by not allowing it to revive.

But why people are not investing in the EU as they did in the past? Investors have lost their confidence in the EU. The main reasons are the huge debt levels of many EU countries and the economic and political underdevelopments.

Junker’s plan

The president of the Commission has come with a plan to face the problem of low investments. Junker’s sayings were the following: “Europe needs a kick-start and today the Commission is supplying the jump cables.” This “kick” will be given by the creation of an EU Investment Fund that will be provided with 315 billion euros in the following three years in order to tackle this issue.

More specifically, this project will consist of 16 billion euros invested by the EU budget and 5 billion euros by the European Investment Bank (EIB). These 21 billion euros will be leveraged in order to end up to the amount of 315 billion euros till 2017. Furthermore, EC is estimating that these investments will create approximately one million jobs.

Will this plan work?

This proposal has yet to be approved by the EU leaders in December’s summit. Will the European leaders support it? The German government and particularly Chancellor Angela Merkel is in favour of it which shows a first positive sign. Gianni Pittella, the group leader of S&D and Syed Kamall, the group leader of ECR showed positive attitude towards the plan but expressed the need for more details.

However, Dimitrios Papadimoulis, representing the GUE/NGL group and Patrick O’Flynn from the EFDD group stated that this project will not help the EU economy. Especially, the former said that: “the package you (Junker) presented is just empty words. €16bn comes from the EU budget and €5bn from the EIB. There is not one Euro of fresh money in there, and you promised that you are going to create some kind of leverage effect multiplying funds by 15. In these times of stagnation and recession in the Eurozone, there is no economist in the world that would believe this”.

Productive or not, this plan will be judged by its outcome (if implemented) and by the results it will have on the real economy. One is for sure though; the money that investors should “throw” in the real market is plenty, making the success of this project difficult.

Will the EC and EIB convince investors to come back to the Old Continent or the European institutions will fail the EU citizens?

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

EU to finance new investment projects with extra borrowing; French and Italian deficits to be tolerated

‘Stealing’ food from hungry Yemenis ‘must stop immediately’, says UN agency

Germany may have a stable and more cooperative government

‘Green economy’ pioneer Pavan Sukhdev wins 2020 Tyler Prize for Environmental Achievement

European Commission: the LED lights of your Audi A6 shall save our planet

Africa will develop with oil and gas – whether the West likes it or not

Madagascar villagers learn dangers of outdoor defecation

Nagorno Karabakh: EU allocates additional €3 million in emergency aid for civilians affected by the hostilities

Does upgrading our minds mean losing the spark of genius?

This is how much the US-China trade war could cost the world, according to new research

“Beating pollution for our planet”, a Sting Exclusive by Mr Erik Solheim, the Executive Director of the United Nations Environment

FROM THE FIELD: South Sudan’s green shoots, highlight environmental recovery from war

OECD economic scenarios to 2060 illustrate the long-run benefits of structural reforms

3 hard-won lessons from a decade of negative cleantech returns

JADE visits Lithuanian Junior Initiatives

Online platforms: improving transparency and fairness for EU businesses

Young people demand a transparent job market: new campaign launches on international interns day

What cybersecurity professionals can learn from triathletes

European Youth Forum welcomes strong stance on human rights in State of the Union

Soil pollution ‘jeopardizing’ life on Earth, UN agency warns on World Day

Statement by the European Commission following the extraordinary meeting of the EU-UK Joint Committee

At UN, Yemen Foreign Minister demands end to ‘Iranian-Houthi coup d’etat’

Most ‘precious’ and ‘scarce’ resource of our time is dialogue, UN chief tells Doha policy forum

3 reasons why AI won’t replace human translators… yet

The British “nonsense”, the relaxed Commissioner and the TTIP “chiaroscuro” at this week’s Council

Mental Health in times of a pandemic: what can each individual do to lessen the burden?

UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’

Malaria could be gone by the middle of the century. Here’s how

As inequality grows, the UN fights for a fairer world

ECB’s trillion has to be printed and distributed fast before Armageddon comes

EU-China: Commission and China hold first High-level Digital Dialogue

Youth policy in Europe not delivering for young people

No great discovery was made without a bold guess – Isaac Newton

What my transgender child can teach us about the workforce of the future

EU to spend €6 billion on youth employment and training futile schemes

EU reconfirms support for Afghanistan at 2020 Geneva Conference

European Banking Union: Like the issue of a Eurobond?

Eurozone dignitaries play with people’s life savings

Why cybersecurity should be standard due diligence for investors

What we need is more (and better) multilateralism, not less

‘Be the change’ we desperately need, UN deputy chief urges global youth

The EU pretends not knowing what happens in the Western Balkans

COVID-19 underlines the importance of fintech in emerging markets

Deep chasm still divides Athens and Brussels; can Eurozone use the nuclear arm of liquidity against Greece?

Mental health and suicide prevention – what can be done to increase access to mental health services in my local area?

Pandemic and mental health: what to do in this context?

Renovation Wave: doubling the renovation rate to cut emissions, boost recovery and reduce energy poverty

TTIP update: postponed vote and INTA meeting shuffle cards again

Economic uncertainty, geopolitical tensions stall growth in Latin America and Caribbean region, UN says

More progress needed on reducing and redesigning agricultural support policies

The road ahead to building a more sustainable world

After the Italian ‘no’ and the Brexit, Germans must decide which Europe they want

Northern Ireland: Parliament wants to secure post-Brexit regional funding

Commission welcomes agreement on the modernisation of EU export controls

Celebrating Gaston Ramon – the vet who discovered vaccinology’s secret weapon

Security Council should ‘nurture’ Colombian consensus against return to violence, top UN official urges

How to make primary healthcare a favourable career choice for medical students: strategies and reflections

Media and entertainment in flux: it’s time for the close-up

Is 2019 the beginning of the end for coal in Europe?

Greferendum: the biggest political gaffe in western modern history to tear Europe apart? #Grexit #Graccident

More Stings?

Advertising

Comments

  1. This Junker investment plan would have very low effects in Italy and also in other weak countries if simultaneously we do not shocks some well identified factors in these economies . This must be strictly coordinated with a more powerful EU new economic legislation and governance .
    These are the steps to follow :
    a) we need to give spending and /or saving power to lower middle and lower up class through houshold basic cost reductions (taxes, energy, health, education etc.)
    b) break the monopoly in the market for energy, insurance, banking and trade unions from one side and cut waste, inefficiency and corruption in government, Public Administration and political parties from the other side .

    To go back to competitive development we dont need incentives in various sectors of industry .. we need to make Public Administratione and Business work in a transparent, efficient , meritocratic and competitive way through a strict respect of law . The money for incentives should be used to lower taxes.
    To give substance to these measures individual countries are no longer able to act alone as the financial variables are all interconnected in the world. As we said before it is useless a program of investment if simultaneously across countries (no exceptions) are not taken concerted maneuvers with international organizations (UN, World Bank, IMF, etc … )to REGULATE international finance and STOP Tax evasion, CLOSE Tax Havens ( all tax Havens .. ) and ensuring TRASPARENCY and MERITOCRACY.
    We need to work on this two-pronged strategy otherwise the EU government attempts will only attempts and weak countries will slip more and more below

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s