Brussels, 18/06/2012 (Agence Europe) - French President François Hollande has recently sent the other EU countries and Council President Herman Van Rompuy a proposal on a series of rapid growth measures costing €120 billion. This is France's contribution to the European Council in Brussels, on 28-29 June.
In the paper, “Pact for Growth in Europe”, France sets out its proposals for getting the EU economy working again, through major initiatives (smart networks, renewable energy, ICT, etc). The €120 billion will come from three sources. Firstly, EU structural funds will provide €55 billion, with a substantial part of this amount being released between now and the end of the year. Then, the European Investment Bank (EIB) which, through increased funding by member states, will be able to leverage up to €60 billion on the markets “which it will lend on to infrastructure projects”.
Finally, €4.5 billion will come from project bonds, joint borrowing by several EU countries to finance major continental infrastructure projects. On this kind of borrowing, Hollande proposes to raise up to €10 billion in the longer term.
“Rapid growth measures, costing €120 billion should be agreed by the Council as early as June”, Hollande writes. “They should be developed before the end of the year with, in particular, creation of a tax on financial transactions. There should also be accompanying measures on employment, first and foremost to help young people into work”, he goes on.
He speaks, too, of transport and water networks, along with improving the energy efficiency of buildings, (insulation, solar panels, more environmentally construction methods, etc). In addition to new technology, the French president also wants, in the long term, to speed up and harmonise investment in nanotechnology, biotechnology and new materials. These €120 billion may equate to less than 1% of EU GDP, but Hollande is hoping for a knock-on effect in all sectors of the economy.
At the start of June, Germany, in disagreement with France over how to restart the European economy, put forward its own growth proposals for Europe, in an eight-page document largely counting on the potential of the single market and on structural reform, such as speeding up privatisation and increased flexibility in the labour market but ruling out any recovery on credit.
The summit meeting between Italian Prime Minister Mario Monti, French President François Hollande, German Chancellor Angela Merkel and Spanish ¨Prime Minister Mariano Rajoy will take place in Rome on 22 June. It will give these four the opportunity to prepare the forthcoming European Council. (LC/transl.rt)