The Juncker Plan at work: bringing investment back on track in Europe

Juncker EU

Jean-Claude Juncker, President of the European Commission at the continuation of the Weekly Commission College Meeting.© European Union , 2018 / Source: EC – Audiovisual Service.

This article is brought to you in association with the European Commission.


In a Communication published today, the Commission reveals how the Investment Plan for Europe – the Juncker Plan – has helped bring investment back to a sustainable level in Europe, four years after its launch.

The Investment Plan has exceeded its initial target and expectations and has now mobilised €360 billion worth of investments, two-thirds of which come from private resources. Thanks to the backing of the European Fund for Strategic Investments (EFSI), 850,000 small and medium businesses are set to benefit from improved access to finance. Estimates show that the EFSI has already supported more than 750,000 jobs, while 1.4 million jobs are set to be created by 2020, generating positive impact in millions of European homes.

The Juncker Plan has already increased EU GDP by 0.6%, a figure set to reach 1.3% by 2020. All Member States are benefiting, especially those who were hit the hardest by the crisis. Today, the EFSI’s successful model is becoming the new benchmark for EU-supported investments, both within and outside the EU, with the new InvestEU fund and the Neighbourhood, Development and International Cooperation Instrument proposed by the Commission for the next long-term EU budget.

Commission Vice-President responsible for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen, said: “The Investment Plan has been a game-changer. After four years, this new and unique approach to mobilising private investment for the public good has brought €360 billion in fresh financing to the economy. We have also helped innovative projects get off the ground, and we have improved the investment environment in Europe. In the EU’s next long-term budget, we want to keep the momentum going, and ensure that the Investment Plan’s successful model becomes the new European standard for investment support.”

Indeed, the indisputable success of the Juncker Plan, beyond its investment dimension, also lies in its two other dimensions. The tailored support provided to hundreds of project promoters under the European Investment Advisory Hub, which has already dealt with 860 requests, and the European Investment Project Portal, which provides an easily accessible pipeline of mature projects for potential investors, are two important innovations in this context.

Efforts have also been made at the national as well as at the European level to remove barriers to investments and make Europe an even more attractive place for businesses to settle and thrive. In line with the objective of the Investment Plan and to improve further the investment environment in Europe, the Communication highlights the need for the following sustained and coordinated efforts:

  • Remove regulatory bottlenecks: The Commission has strived to facilitate cross border exchanges, provide greater regulatory predictability and open unprecedented investment opportunities under the Single Market Strategy, the Digital Single Market, the Capital Markets Union and the Energy Union. While taking stock today of the remaining barriers and opportunities under the Single Market in a separate Communication, the Commission also calls on the European Parliament and the Council to proceed swiftly with the adoption of the reforms identified under these four EU-wide strategies, such as the remaining building blocks of the Capital Markets Union.
  • Pursue business-friendly structural reforms: Under the European Semester, the Juncker Commission introduced a new approach based on a ‘virtuous triangle’ of structural reforms, investment and fiscal responsibility. This approach has delivered, with progress witnessed in all Member States, especially with regard to administration and business conditions. But a stronger push for the implementation of structural reforms is required in some countries, for example in the area of effective justice systems.

Both the 2019 Annual Growth Survey (AGS) published yesterday in the context of the European Semester Autumn package and a Eurobarometer survey published today support the idea that more efforts are needed to remove barriers to investments in Europe. The AGS underlines how important it is to take advantage of sustained economic growth to implement national reforms for productivity growth, inclusiveness and institutional quality and to target investment gaps. The Eurobarometer shows that only some of the companies surveyed were able to make some or all of their desired investments, pointing to remaining regulatory barriers such as administrative burden.

The Commission’s proposal for the next long-term EU budget precisely aims to reinforce the position of the EU in the global economy as an attractive investment destination. The new InvestEU fund will build on the EFSI’s success and will aim to unlock an additional €650 billion of investments, while the Reform Support Programme will provide technical and financial support to Member States to carry out reforms. The Commission calls on the European Parliament and the Council to make progress on the next long-term EU budget and its sectoral proposals.

Background

The Investment Plan for Europe, or Juncker Plan, was launched in November 2014 to reverse the downward trend of low-levels of investment and put Europe on the path to economic recovery. With its innovative approach to investment, the use of limited amounts of public resources with an EU budget guarantee to the European Investment Bank Group, substantial private and public funds have been and continue to be mobilised for investments across strategic sectors of the EU economy, such as infrastructure and housing, research and development, new technologies and production methods, education and skills and the transition towards a low-carbon economy.

In July 2018, the Juncker Plan exceeded its original investment target of €315 billion. 993 operations have now been approved under the EFSI, which are expected to trigger €360 billion in investment across the 28 EU Member States, with a €500 billion target by 2020.

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

A Europe that Protects: Commission calls for decisive action on security priorities

How the diaspora is helping Venezuela’s migration crisis

GSMA Mobile 360 Series – Latin America, in association with The European Sting

1 million citizens try to create a new EU institution

Can free trade deliver cheaper renewable energy? Ask Mexico

On the first day of 2019, over 395,000 babies to be born worldwide: UNICEF

Qualcomm to be the next target of EU antitrust regulators? China might be the answer

Scoring for the environment: what Mathieu Flamini’s top-flight football career taught him about leadership

CEOs in these countries are more likely to go with their gut

Pandemic mental health: the urgency of self-care

Financing fossil fuels risks a repeat of the 2008 crash. Here’s why

Changing how we produce and consume: New Circular Economy Action Plan shows the way to a climate-neutral, competitive economy of empowered consumers

Your smartphone may know more about your mental health than you

Future Forces Forum: Prague will be hosting the most important project in the field of Defence and Security

Gig workers among the hardest hit by coronavirus pandemic

EU budget: Reinforcing Europe’s cultural and creative sectors

Stepped-up efforts needed to combat pneumonia; save nearly nine million children’s lives

COVID-19: What to know about the coronavirus pandemic on 6 April

Brexit and migration dominates the debate on October’s EU summit

EU-Turkey relations: Will Turkey manage to revive the EU accession process talks?

European Semester Autumn Package: Creating an economy that works for people and the planet

Burundi: Inclusive dialogue ‘only viable option’ for resolving country’s political crisis says, UN envoy

EU Youth Conference in Amsterdam: enabling young people to engage in a diverse, connected and inclusive Europe

Africa-Europe Alliance: first projects kicked off just three months after launch

Here are 4 of the most politically charged World Cup games ever played

This chart shows the total number of COVID-19 cases and recoveries so far

Supporting the recovery: MEPs adopt budget priorities for 2021

This is how the Western Balkans will become more innovative

EU out to conquer African Union summit

Nearly half a billion people can’t find decent work; unemployment set to rise: new UN labour report

With potential to boost profits by up to 20 per cent, a woman’s place is at work, says UN labour agency

Junior Enterprises as a solution for Youth Entrepreneurship

Spring 2019 Economic Forecast: Growth continues at a more moderate pace

UN chief condemns suspected Boko Haram attacks targeting Eid al-Fitr celebrations in Nigeria

IMF: The near-term outlook for the U.S. economy is one of strong growth and job creation

Capital Markets Union: Making it easier for insurers to invest in the real economy

Germany loves a strong euro; the new Fiscal Councils can deliver despite the Greek chaos and a wider questioning of austerity

Can Greece’s devastating economy deal with the migration crisis?

Do men and women really have different leadership styles?

We can build a carbon-neutral world by 2050. Here’s how

New identity cards deliver recognition and protection for Rohingya refugees in Bangladesh

Indonesian tsunami death toll climbs over 400 as Government-led relief efforts are stepped up

These 11 EU states already meet their 2020 renewable energy targets

International Court of Justice orders Pakistan to review death penalty for Indian accused of spying

Mother of all mergers between Facebook Messenger, WhatsApp and Instagram: EU Data Privacy restrictions against Facebook’s imperialistic plans

Antibiotics are contaminating the world’s rivers

New ECB boss quizzed for the first time by Economic Affairs Committee

MEPs back update of rail passenger rights across EU

Batteries included: how better storage can transform renewable energy

Venezuelan crisis: MEPs reaffirm their support for Juan Guaidó

‘Reasons to hope’ for sustainable peace in Central African Republic – UN Mission chief

Four million Syrian children have only known war since birth: UNICEF

Germany fears that Americans and Russians want to partition Europe again

Radio still a powerful worldwide tool for ‘dialogue, tolerance and peace’: Guterres

More women and girls needed in the sciences to solve world’s biggest challenges

Stronger partnerships with post-conflict countries needed to ensure ‘path towards durable peace’: UN chief

I accidentally went viral on TikTok. I learned we failed our youngest generation.

Code of Practice against disinformation: Commission calls on signatories to intensify their efforts

To retire at 65, American millennials need to save almost half their paycheck

New EU rules cut red tape for citizens living or working in another Member State as of tomorrow

More Stings?

Advertising

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