Brussels, 09/09/2014 (Agence Europe) - Polish Finance Minister Mateuscz Szczurek has proposed the creation of a European Fund for Investments (EFI) under the aegis of the EIB and capable of financing the creation of network infrastructure to a level of €700 billion between 2015 and 2019.
This EFI would be created along the lines of the European stability mechanism, the permanent bailout fund of the eurozone. The member states would inject capital into it, which would be excluded from the calculation of the public deficit, as well as public guarantees to ensure that the fund maintain the maximum AAA rating.
Using the capital paid into it, the EFI would raise funds on the market, leveraging funds of up to €60 billion in 2015, €160 billion in 2016, €260 billion in 2017, €160 billion in 2018 and €60 billion in 2019. These sums would be directly invested in major infrastructure projects, assets which would then be privatised to generate revenue for the EFI.
The EU can afford an initiative of this kind: “It would be economically and financially irresponsible to reject it given the historically low interest rates”, Szczurek stressed on Thursday 4 September, in a speech at the annual conference of the think tank Bruegel. He added: “As Europeans we should never forget that it was depression and deflation that brought about the totalitarian regime that devastated our continent through the World War 75 years ago”.
Among the sectors of activity which would benefit from this funding, the minister listed energy, transport, information and communication technology and defence.
With an economic climate marked by stagnant growth and the risk of deflation, the political debate at European Union level is now focusing on ways of stimulating activity whilst striking a balance between budgetary stability, structural reforms and relaunching investment. It will continue on Friday 12 and Saturday 13 September, at the informal Ecofin Council, where Germany and France will announce joint proposals. In October, two European summits will be given over to employment and growth, by request of the Social Democrat family (see EUROPE 11100). One of the aims will be to lay down guidelines for the Juncker Commission on the launch of a major investment plan. (MB)