Brussels, 12/11/2003 (Agence Europe) - On Tuesday, the European Commission adopted the final version of its action plan defining measures to be taken to kick-start investment in trans-European networks (TEN) and the knowledge economy in the EU. This report on the European Growth Initiative, developed in close collaboration with the European Investment Bank (EIB), will be examined by the Heads of State and Government at the European Council in December. It confirms the proposals made by the Commission in October with a view to speeding up investment in the 29 priority trans-European transport networks with their subsections. It also aims to place the EU at the cutting edge of innovation and technology through the launch of pan-European projects in these areas, thus reinforcing the Union's wider structural reform agenda launched at the Lisbon European Council in March 2000. The report includes a proposal for a "Quick-start" programme of 56 projects, which are ready to start immediately, have a strong cross-border impact and yield positive results in terms of growth, employment and protection of the environment. The "Quick-start" programme indicates the projects on which work should be underway within the next three years at the latest. The overall investment cost by 2010 amounts to around EUR 38 billion for the key cross-border sections of TEN for transport (TEN-T), EUR 10 billion for key projects in TEN for energy (TEN-E) and around EUR 14 billion for projects linked to high output communication networks and to research, development and innovation. This implies investment of around EUR 10 billion per year to be covered by public and private sources.
Romano Prodi, who presented the report to the press, insisted that the initiative was a "much-needed catalyst for growth and competitiveness" in the enlarged Union and called upon the Member States to show political resolve. "We now expect Member States to back up their good words with action. This means delivering agreed and pending reforms and backing growth supporting investments through their national and regional spending plans", the Commission President pointed out. He specified that "private capital can follow only if we deliver a credible framework and demonstrate commitment to projects with a European dimension". Speaking of "Quick-start", Mr Prodi expressed the hope that "governments will be motivated and take often long overdue decisions on these projects". Speaking on the same subject, Loyola de Palacio said for her part that it is necessary to force political resolve so that the proposals made may be changed into reality. With "Quick-start", the Commission wished to place emphasis on projects that can be accomplished, give fresh impetus and introduce private capital participation, she continued. The vice-president of the Commission responsible for energy and transport did not hide the fact that, without private capital participation - estimated at 40% on average of the cost of projects - the growth initiative would fail.
The report adopted on Tuesday stresses how important it is to abolish administrative and regulatory barriers that hold back investment. It also presents the way projects may be financed, combing Community and national financing, EIB and private investment support, a combination of the various financing sources varying from one project to another. The Commission stresses that innovative forms of financing, such as the new guarantee mechanism that it proposes, may also be used.
The Quick-start programme developed in close cooperation with the EIB is concerned, sets four criteria: (1) maturity, in the sense of being able to start within the next three years; 2) the cross-border dimension; 3) their impact on growth and innovation; and 4) their positive environmental effects. In the field of transport, the programme draws on the full list of sub-projects in the priority list of 29 projects for TEN-T adopted by the Commission in October. As far as energy is concerned (TEN-E), the cross-border projects identified, which cover the fields of gas and electricity, aim to reduce the risk of black-outs on the scale recently experienced in some Member States. Finally, for information technologies (ICT) and research-development, emphasis is placed on broadband, knowledge and innovation, a choice that reflects the priorities adopted in e-Europe and in the European Research Area. Generally speaking, the Quick-start projects are those that offer a significant return for Europe. For example, the Commission stresses that "supporting complex cross-border transport links can make other national links more viable, helping to attract private investment. By focusing on rail and sea links, we take account of benefits for the environment. Equally, supporting high-speed Internet access, promoting the next generation of key technologies or strengthening Europe's position in Space are part of our Lisbon strategy and can deliver dividends in terms of innovation, cohesion and jobs".
In the case of TEN transport, the projects identified need investment of around EUR 38 bn by 2010, whereas gas and electricity projects need investments to the tune of around EUR 10 bn. In the broad band sector, in which investment will probably be orchestrated by private investors, total needs will be identified as soon as Member States have communicated their strategies on broad band, expected at the end of the year. Broad band has benefited from EUR 6 bn programmed between 2000 and 2006 as part of the EU Structural Funds supporting the Information Society and will obtain EUR 7 bn from the EIB during the second phase of its Innovation initiative 2010. Projects proposed for research and technological innovation (RDI) are expected to provide investment of around EUR 10 bn by 2010. Research projects targeted by the "Quick Start" project focus on hi-tech areas such as hydrogen, fuel batteries, nanoelectronics and next-generation lasers. For broad band and RDI projects, scope will include the overall areas identified and which are still being perfected by way of more detailed discussions with the parties concerned. This explains why we don not look as the projects on Trans-European transport and energy networks below.
Transport and energy network projects
Trans-European transport network: Railway line Berlin-Verona/Milano-Bologna-Napoli-Messina-Palermo railway line(trunk: Brenner tunnel; total project cost in millions of euros: 4312) High speed railway line (HS) Paris-Brussels/Brussels-Cologne-Amsterdam-London (Liège-Cologne section; cost: 1184) HS south west European railway line (Figueras-Perpignan section and Lisbon/Porto-Madrid; cost: 950 and 5700 respectively) Eastern HS railway line (Strasbourg-Appenweier section cost: 150) Betuwe Line Lyon-Trieste/Koper-Ljubljana-Budapest-Ukrainian border link (Mont-Cenis Tunnel section and modernisation of the Budapest-Ljubljana line; cost: 6100 and 760 respectively) Igoumenitsa/Patra-Athina-Sofia-Budapest motorway (sections Athina-Thessaloniki-Bulgaria and Sofia-Kulata; cost: respectively 1200 and 675) Multimodal link Portugal/Spain-rest of Europe Railway link Cork-Dublin-Belfast-Larne-Stranraer (finished in 2001) Malpensa airport (finished in 2001) rail/road link between Denmark and Germany (finished in 2001) Road link United Kingdom/Ireland/Benelux (section Felixstowe-Holyhead/Stranraer; cost: 1349) "West Coast Main Line" Railway link (freight) Sines-Madrid-Paris railway link f Paris-Strasbourg-Stuttgart-Vienna-Bratislava (sections München-Mühldorf-Salzburg (modernisation) and Vienna-Bratislava (idem); cost: respectively 898 and 134) River route Rhine/Meuse-Main-Danube (sections Vienna-Bratislava and Rhine-Meuse; cost: respectively 180 and 504) Interoperability of HS railway network in Iberian peninsula (section: Corredor Norte-Noroeste, including Vigo-Porto; cost: 8736) "Fehmarn Belt Railway Line" Sea motorways (Baltic, South West and South East Europe, motorways) Railway line Athina-Sofia-Budapest-Vienna-Prague Nürnberg/Dresden (modernisation of Budapest-Sopron-Vienna section; cost 1318) Railway line Gdansk-Warszawa-Brno/Bratislava-Vienna (modernisation of Katowice-Breclav and Katowice-Zilina-Nove Mesto n.V sections. cost: respectively 731 and 1331) Railway line Lyon/Geneva-Basle-Duisburg-Rotterdam/Antwerp (modernisation or replacement of tracks on Dijon-Mulhouse-Mülheim, Basle-Karlsruhe and Rheidt-Antwerp sections Dijon-Mulhouse-Mülheim, Basle-Karlsruhe and Rheidt-Antwerp sections; cost: respectively 2080, 4235 and 550) Gdansk-Brno/Bratislava-Vienna motorway (Brno-Vienna section; cost: 479) Train/road link Ireland/United Kingdom/mainland Europe (modernisation of tracks on sections Cork-Dublin-Belfast and Crew-Holyhead; cost: respectively 469 and 120) "Rail Baltica" Warszawa-Kaunas-Riga-Talinn line "Eurocaprail" on railway link between Brussels-Luxembourg-Strasbourg Railway line in intermodal corridor Ionnian/Adriatic Galileo (cost: 3200).
Trans-European energy networks enhancement of electric networks for solving congestion between France, Belgium, Netherlands and Germany (Avelin-Avelgem and Moulaine-Aubange lines; cost: respectively 13 and 30 millions euros) Increase of electricity interconnection capacity at Italian border with France, Austria, Slovenia and Switzerland (Robbia-St.Fiorano lines and conversion phase for Italy/Slovenia; cost: respectively 25 and 40) Increase in interconnection capacity between France, Spain and Portugal and development on island network in Iberian peninsula (l Sentmenat-Bescano-Baixas and Aldeadavila-Douro-Valdigem lines; cost: respectively 100 and 11) Development of electrical infrastructure to connect Greece to the UCTE system (Philippi- Hamidabad; cost: 50) United Kingdom-continental Europe and North Europe: increasing electrical interconnection capacities and possible inclusion of offshore wind energy (sub-sea cable; cost: 480); Increasing electrical interconnection capacities and possible inclusion of offshore wind power between Denmark, Germany and the "Baltic Ring" (sub-sea cable Skagerak 4, Harku-Espoo (ESTLINK) lines and Alytus-Elk; cost: 400, 110 and 434 respectively) Improved interoperability for security of gas supply (North Transgas Pipeline- Russia, Germany, Netherlands, UK; cost: 5000) Construction of new gas pipelines from Algeria to France, Spain and Italy, and increasing network capacities between these three Member States (cost: 2040) Caspian Sea countries- Middle-East- EU: new gas pipeline networks (countries involved: Turkey, Greece, Italy; cost: 900).