From where will the $ 300 billion of EU plan? Katainen not responding – Il Sole 24 Ore

From where will the $ 300 billion of EU plan? Katainen not responding – Il Sole 24 Ore

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This article was published on 7 October 2014 at 13:42.

Our correspondent from BRUSSELS – The vice president-designate of the European Commission, the Finnish Jyrki Katainen, said today before the European Parliament here in Brussels that the plan by $ 300 billion euro, promised by President-elect of the Community executive Jean-Claude Juncker, will be a “comprehensive package” that should be based on public and private money, as well as on reforms to strengthen the single market.

There are details
He did not, however, explain whether and how much of the money will come from new sources, provoking criticism from many MPs. “We need 300 billion of real investment (…) We need to give a new impetus to the European economy, without creating new debt,” said the former Finnish Prime Minister during a parliamentary hearing in view of the vote of confidence that should undergo the Commission Juncker 22 October in Strasbourg. Katainen, responsible for growth and jobs, he insisted to explain that most of the money should come from the private sector.
That said, he admitted that “public money should be used to attract private investors.” He added: “The most important part will come from the private sector, but a lot of money will come from the public sector.” Katainen believe that we should make better use of the EU budget, give new priority to domestic investment, and strengthen the lending capacity of the European Investment Bank and the national public banks.

Package from $ 300 billion
300 billion package must also include measures on the demand side. The vice president-nominee explained that it is necessary to strengthen the single market by opening more protected sectors to stimulate consumption and investment. He cited in particular transport, energy, the digital sector. “Countries with a high active current account have to spend more to help our neighbors,” Katainen said, referring in particular to Germany.

Funds public or private?
former Finnish Prime Minister has had the merit of presenting a coherent strategy of investment and reform, but how convincing? Many Members have noted that he has never indicated whether the money under the plan Juncker will be all new money. Doubts were also there to find the balance between public and private funds, especially if the commitment is to avoid new debt. Katainen said that the plan is in the works and many details are still confidential.

reshuffle in the team ahead of Juncker
The hearing of the Vice President of the Commission is Moreover, while the fate of the Community executive dominates the uncertainty. The hearings were an obstacle course. A three commissioners were asked written explanations. A candidate has been recalled. Another was rejected. There is a rumor of a review of skills; possibly a reshuffle, although this possibility is politically complicated. A vote of confidence on the new team is scheduled Oct. 22.

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