Brussels, 12/02/2013 (Agence Europe) - Digital Agenda Commissioner Neelie Kroes expressed great disappointment at the amount earmarked in the compromise on the multiannual financial framework (MFF) 2014-2020, endorsed by the European Council on 8 February, for the Connecting Europe Facility and the digital sector in particular. “It is clear that there can be no financial support for broadband”, she said, adding that a cut of that kind is a “missed opportunity”. She underlined the fact that the proposed funding will no longer be able to be used for high output infrastructure “so this funding will be exclusively for digital services”.
The Connecting Europe Facility (CEF) was the adjustment variable for bringing down the budget, with an allocation to it of just €29.9 billion, the amount earmarked for the telecoms sector having been particularly trimmed down to just €1 billion compared to the €9.1 billion recommended by the European Commission, i.e. an 86% cut in the budget proposed for that sector. This will reduce the amount of fresh money set aside for funding broadband network infrastructure so bitterly defended by Neelie Kroes, who makes this her priority for 2013 (see EUROPE 10777). “I regret that”, she said, “because broadband is essential for a digital single market, the rails on which all tomorrow's digital services will run; and this could have been an innovative and highly-market oriented way to deliver it”. She pointed to the longer term benefits to be gained from a well-developed broadband infrastructure network, which will largely make up for any initial investment. Broadband development objectives will now be harder to achieve, she said, adding, however, that, although the CEF was an important tool to move towards that goal, it is not the only one. She explained that member states have now taken it on themselves to invest, with their own funds or the EU's structural funds. She hoped to work closely with the European Investment Bank (EIB) to ensure its active involvement in lending for broadband projects, saying the recent EIB capital increase of €10 billion “brings the promise of fresh broadband funding”. The commissioner therefore calls on member states to shoulder their responsibilities in order to encourage the private sector to invest. “I am ready to work and fight even harder, to develop a more favourable European market for investment in broadband, fixed and wireless”, Kroes said. According to the Commission's estimates, nearly €2 billion in investment will be needed to ensure full European broadband coverage by 2020.
ETNO, the European Telecommunications Network Organisation, which defends the interests of traditional operators, has also expressed disappointment. ETNO President Luigi Gambardella has said: “Given the key importance of high speed broadband networks and the potential leverage effect of investments of the CEF, this budget cut is a missed opportunity for Europe's economic recovery”. The FTTH(Fibre to the Home) Council Europe also spoke of its disappointment at the budget decision, underlining that this demonstrates the lack of understanding on the part of European governments of the importance of future-proof broadband networks. (IL/transl.jl)