EU: Juncker investment plan is based on a capital of 13 billion – AGI – Agenzia Journalistic Italy

EU: Juncker investment plan is based on a capital of 13 billion – AGI – Agenzia Journalistic Italy

23:21 November 25, 2014

(AGI) – Brussels, NOVEMBER 25 . – The investment plan of the Commission of Jean-Claude Juncker, approved today by the Executive EU, will be based ‘on a capital of 13 billion euro, with 8 billion of funds taken from the EU budget and 5 billion Bank’s capital European Investment Bank (EIB), and will be ‘managed by a new financial vehicle called the European Investment Fund strategic. E ‘indicates how the European Commission in a number of press releases issued today. The final sum of investment and ‘estimated at 315 billion, no more’ 300 billion more ‘times announced. But it ‘s only a theoretical figure that will be able’ to be checked only at the end of the three years of implementation of the plan. To this figure you come through a complex financial engineering and a number of multiplier effects, the results of which are but ‘to be verified. Of the initial 13 billion, eight come from the EU budget, and in particular 3.3 will be deducted from the funds for infrastructure interconnecting European, 2.7 by Horizon 2020, the EU program for research and development, and 2 billion should come from the margins budget, but ‘are by check (which further reduces the certain portion of the initial capital). These 8 billion will be doubled by the EIB through the issuance of bonds.

EU Commission approves budget of Italy and other countries

‘Apply what will be ‘the impact on the credit rating of the EIB, as the operation is done without changing the bank’s capital. The 16 billion so ‘obtained, more’ 5 EIB, should be the capital base of the European Investment Fund strategic. This fund, “if created quickly and provides 21 billion,” as it said in a note from the Commission, will be ‘used as collateral to enable the EIB to lend up to 63 billion euro in three years (three times core capital). The states will be able to add additional funds on a voluntary basis. Loans from the EIB would focus on strategic projects but risky in the transport, telecommunications or other areas identified as crucial for economic recovery Continental.

The investments of the EIB should generate a multiplier effect quintuplicante, so to get to 315 billion. In essence, public and private investors would be encouraged to invest in the projects co-financed by the EIB as it was considered more ‘safe, and as the Bei you would place greater risks. The funds that will be added to those of the EIB loans may also be European Structural Funds and national co-financing, depending on the project, said an official of the EIB. Private individuals are obviously part of the expected multiplier effect. The strategy of the plan is not ‘unlike that of project bonds, launched by the Commission Jose’ Manuel Barroso, but still waiting to show results in the real economy. The fund for strategic investments should be operational from meta ‘in 2015, but requires the approval of the Council and the EU Parliament.