–French Presidential Candidate Hollande Hails Stimulus Projects
MADRID (MNI) – The European Commission is preparing a “kind of
Marshall Plan” of E200 billion to stimulate growth in Europe via public
and private investment in infrastructure, renewable energies and high
technology, the Spanish daily El Pais reported over the weekend.
The most likely financing strategy would mobilize E12 billion in
unused funds of the European Financial Stability Mechanism to attract
private funds for the European Investment Bank (EIB) as guarantees for
public-private infrastructure projects, the paper said, citing “European
sources.”
“Sophisticated financial instruments and bonds” guaranteed by the
EU, aimed at pension funds and other investors, would be used to finance
the projects, it said.
An alternative source of financing via an injection of capital in
the EIB from EU member states appears less likely given the squeeze on
national budgets, the newspaper said. A “menu of options” could be
submitted to heads of government at a summit at the end of June.
French presidential candidate Francois Hollande said Monday that
economic stimulus projects are also circulating among the various
capitals of Europe. “The word ‘growth’ is back!” he said in a radio
interview. “My ideas are advancing.”
The Socialist Party candidate reiterated his intention to
“renegotiate” the EU Fiscal Compact aimed at strengthening budget
discipline, arguing that the concept of economic convergence in the
treaty would “never” suffice to stimulate growth without parallel
instruments like the mobilization of unused EU structural funds, the
action of the EIB, the launch of eurobonds and a tax on financial
transactions.
[TOPICS: M$F$$$,M$S$$$,M$X$$$,MT$$$$,MGX$$$,MFX$$$]
