Brussels, 27/11/2014 (Agence Europe) - Several interest groups have reacted to the presentation, on Wednesday 26 November, of the investment plan of the European Commission (see EUROPE 11205).
Under the banner of Insurance Europe, the insurance sector, which represents the biggest institutional investors with €8.5 trillion in managed assets, will be examining the Juncker plan “with great interest” and looks forward to the coming discussions on how to “remove the barriers” to investment. The European Banking Federation (EBF) also stresses the importance of “regulatory certainty and stability” in Europe, to channel long-term funding, particularly for access to the capital markets and ensuring the contribution of the national and multilateral economic development banks. “Faster and more visible progress in budgetary and financial integration is also essential for restoring business confidence and investment intentions”, the EBF states.
The Association of European Chambers of Commerce and Industry (Eurochambres) praises the plan's approach of mobilising a proportion of public money (€16 billion from the EU budget and €5 billion from the EIB) to create a leverage effect to attract up to 15 times more in private funds. “This is an important signal to administrations across the EU on how to optimise the impact of constrained public budgets”, the association states, welcoming an end to “the subsidy culture”. It goes on to call for additional measures to improve the absorption of funds and for the Commission's working programme for 2015 to include initiatives to promote the completion of the digital single market and the single market for services. In the view of the principal European employers' organisation, the success of the investment plan will depend on the “more ambitious” steps to follow. The real challenge for the Commission will be “breaking down investment barriers across the EU”, said Emma Marcegaglia, the president of BUSINESSEUROPE. The organisation stressed the importance of selecting projects which would not come about without the creation of the European Fund for Strategic Investments (EFSI) under the aegis of the EIB.
According to the European Centre of Employers and Enterprises Providing Public Services (CEEP), the Juncker plan is the “right instrument” and, if it proves its efficiency, it should be made a permanent instrument. It welcomes the fact that the national contributions to the EFSI will not be included in the Stability and Growth Pact assessments. It urges the member states actively to engage in this initiative at the European Council of December.
Not all of the European organisations gave such glowing reviews. Although the European Trade Union Confederation (ETUC) approves of the aim of boosting investment, it feels that “the Commission seems to be counting on a financial miracle along the lines of the loaves and fishes”. “Far more will need to be done to revive the economy of Europe”, said Bernadette Ségol, secretary general of the ETUC.
The Social Platform, which represents 49 organisations defending the fundamental rights, criticises the Juncker plan for failing to include a strong social dimension. “The European social model will not survive unless a serious commitment is made to invest in ambitious and integrated social policies”, it warns, arguing that such a procedure is vital in order to achieve “growth that is not only 'smart', but also 'inclusive'”. The platform is calling for a social policy expert to be included in the expert committee responsible within the EFSI for selecting projects on the basis of an open list of projects to be published by the EIB/Commission taskforce next week.
Lastly, Counter balance, a European coalition of NGOs in the fields of the environment and development, has warned that the planned mechanism could bring about the risk of socialising the losses made in certain investments. “The EU debt crisis was the consequence of an unfair risk-reward balance. Big banks took the profit while the risks were borne by taxpayers. Instead of rebalancing this injustice, Juncker's package seeks to generalise this principle throughout the entire economy”, it argues. (MB)