Thursday, January 15, 2015

Katainen: Italian reforms increase competitiveness – Il Sole 24 Ore

Katainen: Italian reforms increase competitiveness – Il Sole 24 Ore

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This article was published on 15 January 2015 to 09:34 hours.
The last modified on 15 January 2015 to 11:35 hours.

In Europe, “they all desperately need economic growth. The engine is investment and all countries suffer from a lack of investment. ” This is why the European Commission has decided to give “top priority” to their revival. He said the European Commission Vice President Jyrki Katainen, during his audition committees gathered Budget, Production, Labor and EU Policies of the House and Senate. Katainen is today in Rome with the dual aim of illustrating the investment plan of 315 billion euro devised by Brussels and to mobilize the interest of public and private investors. “We want to start the process projects and the new Fund by June – said the vice president – to begin offering the possibility of access to credit for SMEs” and for the revival of “infrastructure projects”.

Kaytainen: Italian reforms right, Jobs Act will help to take
As for the reforms implemented by the Italian government “are important and for me, personally, are all right and will increase the country’s competitiveness. That ‘what we say private operators, “said Katainen, who promoted the Jobs Act:” It will help to take the people and is more equitable than the young. ” In particular, the reform of justice “if implemented quickly and efficiently implement positive change.” To the Vice President of the EU Commission, “it is possible” although “we must wait forecasts» Spring, that Italy could take advantage of the new clause on flexibility on the accounts of the EU. This was said with reference to the new guidelines on the interpretation of the Stability and Growth Pact on 13 June in Strasbourg. Guidelines that offer new room for maneuver in Italy put their public accounts.

To mobilize private capital
Katainen stressed the need to “commit to mobilize private capital for productive investments.” Also because to meet budget constraints “in making cuts states have given priority to public investment, reducing them very much” .It is the reason that “led to the creation of the European Investment Fund strategic (Feis).” The initial capital of the new fund will be 21 billion euro, with the goal through a leverage to encourage investment of 315 billion euro.

Investors are not sustainable and profitable projects
Durations hearing parliamentary committees Katainen explained that in Europe one of the key problems of private investors “is not found projects sustainable and profitable. ” And it is precisely this aspect that points to intervene new fund on strategic investments by the commission wanted Juncker. “Will share the risks – explained Katainen – If there will be losses on a project fund will suffer the first loss, just to encourage individuals to invest.” Given that the bulk of the projects to be financed by private “this fund does not distribute a grant, but loans at lower rates than the market.” The Feis, added Katainen ‘is similar to Bei but with a difference: assume a greater share of risk. This is the secret of the Fund. We do not want to increase the burden on taxpayers for investment. ” But the bottom “is not a magic wand that will so lve everything”

Individuals want policy choices outside EU Fund
Not only. The new fund will guarantee European investment decisions independent from politics. “The private sector has made it clear – explained Katainen – that to make investments on the Feis, this should not make a selection policy, otherwise you do not trust the profitability of the projects.” That’s why the fund, which utilizzaràun little ‘public funds to mobilize private funds’ investments will have a committee of seven independent people who will evaluate projects and then take decisions independently, without political interference. ” There is also a “steering committee of the fund consists of those which can be considered the” shareholders “, the parties who funded the bottom.” Determine “the level of risk and guidelines for investment. For example this year on broadband and renewable energy. ” But this political body “does not take investment decisions chosen,” he assured Katainen.

Visit of two days in Italy
The two-day visit to Italy (today in Rome tomorrow in Milan) will serve the former Finnish Prime Minister to meet with representatives of the government, trade unions and business associations. Among others, Katainen will meet Economy Minister Pier Carlo Padoan, the president of Confindustria, Giorgio Squinzi, the Minister of Economic Development Federica Guidi and the President of Cassa Franco Bassanini.



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