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?

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

ECB money bonanza not enough to revive euro area, Germany longs to rule with stagnation

The vicious cycle of poverty and exclusion spreads fast engulfing more children

“Hasta la vista” Google says to Spain and now Europe is next?

The ECB proposes a swift solution for SMEs’ financing

The EU spent €158 billion on vague, open-ended rural projects

China hopes EU Commissioner De Gucht drops super anti-dumping tariff on solar panels

Fighting for minds of youth in Latvia

EU prepares for the worst case scenario as Turkey seems to be withdrawing from the migration deal

2013, a Political Odyssey: What future for Italy?

Eurozone set to abandon monetary and incomes austerity and adopt growth friendly policies

Migration Crisis: how to open the borders and make way for the uprooted

The UN supports Europe’s military action in Libya and the Mediterranean; Russia and China agree

A hot autumn after a cool summer for Europe

Eurozone: Avoiding a new Greek accident

What is the IMF telling Eurozone about fiscal and banking unification?

The EU moulds a new compromise for growth and financial sustainability

Cédric in India

G20 LIVE: Fact Sheet from the G20 Leaders Summit and key outcomes (G20 Antalya 2015 Summary)

EU to gain the most from the agreement with Iran

The Commission sees ‘moderate recovery’ but prospects deteriorate

How will the NATO-EU competition evolve in the post Brexit era?

The rise of alternative medical practices in modern sports

China Unlimited Special Report: at the heart of Beijing

High level political talks didn’t break the stalemate in Ukraine

Historical success for the First ever European Presidential Debate

Austerity lovers and ‘relaxationists’ fight over the EU budget

The EU Commission lets money market funds continue the unholy game of banks

Imaginary Journeys Into Eternal China

World Retail Congress announces Dubai 2016 Hall of Fame Inductees

How bad is the Eurozone economy? The ECB thinks too bad

Will the French let Macron destroy their party political system?

IMF asks Europe to decide on bank resolutions and the Greek Gordian knot

MWC 2016 LIVE: CEOs issue rallying call to drive ‘gigabit economy’

The Future of Balkans: Embracing Education

MWC 2016 LIVE: Xiaomi looks to revive growth with flagships

CHINA UNLIMITED. PEOPLE UNLIMITED. RESTRICTIONS LIMITED

The Junior Enterprise concept: Business & Education

Eurozone retail sales fall shows recession

Volkswagen getting away with it in Europe

Greece returns to markets at a high cost to taxpayers, after four years out in the cold

Bram in Colombia

Solitary Britain sides with US aggressing Russia and chooses hard Brexit

Crimea: The last bloodless secession of a Ukraine region?

“These Romans are crazy”, the “Greek Gauls” will be shouting today in Brussels hoping Caesar backs off

Quality Internships: Towards a Toolkit for Employers

The Ecofin deceives the SMEs with the EIB €10bn capital increase

Dark spots on EU humanitarian aid spending

Kellen Europe Hosts EuroConference 2016

Counting unemployment in the EU: The real rate comes to anything between 16.1% and 20.6%

Prevent future crises and empower youth – now!

Theresa May in search of a magic plan to invoke Article 50 and start Brexit negotiations now

Why do medical students need to go abroad to become a doctor in 2017?

The Eurogroup offered a cold reception to IMF’s director for Europe

EU secures more and cheaper energy supplies

Financiers can turn the world into a dirty and dangerous place

Why the merchant ships can pollute the atmosphere with CO2 quite freely

Ukraine: Is there a political force able to undo the division?

The JADE Spring Conference 2017 is casting its shadows before

COP21 Breaking News_04 December: Building a Sustainable Future – speech by UNEP Deputy Executive Director Ibrahim Thiaw at the LPAA Thematic Event on Buildings

“C’est la vie”? French recession and unemployment to linger in Eurozone

More Stings?

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s