Brussels, 09/12/2014 (Agence Europe) - The Ecofin Council gave its support on Tuesday 9 December to the European Commission's investment programme known as the Juncker Plan to mobilise €315 billion over three years. It is now for the European Summit next week to give its approval to the initiative.
Investment Commissioner Jyrki Katainen said that the finance ministers had welcomed the three pillars of the Juncker Plan - taking action on liquidity by setting up a European Strategic Investment Fund (ESIF) under the aegis of the EIB; - creating a transparent pipeline of 2,000 projects worth a total of €1,300 billion, including €500 billion of loans to be financed over the first three years; - legislation for a better Single Market to create a better environment and boost growth (see EUROPE 11205). “Everybody understands that this cannot be done by getting into more debt.”
The EIB/Commission taskforce presented its final report to the Ecofin Council, looking at the main barriers to investment in Europe. The report is accompanied by an open list of some 2,000 projects submitted by the member states and selected using criteria such as economic viability, European interest, speedy implementation and sector of activity (transport, energy and the digital economy). Katainen's circles explain that being on this list is not enough in itself to guarantee finance.
The structure of the Juncker Plan raises the question of governance of the ESIF in order to minimise political interference in the selection of projects. Independent experts will be taken on to select projects on the basis of merit.
Katainen admitted that no country has yet promised to contribute to the Juncker Plan. It is possible that there will be national contributions but the plan has been drawn up in such a way as to ensure positive results even if countries refuse to contribute, he added. Direct contributions to the ESIF could take the form of capital or public guarantees. The question of how they would be viewed on the balance sheet under the Stability and Growth Pact is a matter of debate. Ditto for public co-financing by the member states of eligible projects. (MB)