Gold Rush

Juncker's Billions up for Grabs

Juncker's Fund dpa
Everyone wants a hand-out from Juncker.
  • Why it matters

    Why it matters

    E.U. president Jean-Claude Juncker wants each of the member states to contribute to an investment fund to increase growth and jobs. Government leaders like the new investment plan but may balk at dipping into their own pockets.

  • Facts

    Facts

    • Jean-Claude Juncker’s new European Fund for Strategic Investments (EFSI) will kick off with €21 billion ($25.7 billion) from the E.U. budget and the European Investment Bank.
    • It is intended to stimulate growth in Europe, speeding up economic recovery by financing hundreds of projects in the member countries
    • Mr. Juncker wants to use the capital to leverage investments of €315 billion in infrastructure, research projects and innovative companies over the next three years.
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  • Audio

    Audio

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Last week the European Commission’s president Jean-Claude Juncker appealed for financial support from member states for his growth initiative’s investment fund.

However, the 28 government leaders who meet in Brussels on Thursday and Friday may not be too inclined to fulfill his wish.

“I need more than just words, I need money too,” Mr. Juncker said.

He wants the leaders to top up his new investment fund with billions from their respective state coffers.

Mr. Juncker’s plan says that contributions to the fund would not be counted as part of national budgets, many of which are in breach of tighter deficit rules imposed by Brussels.

Individual national contributions to Mr. Juncker’s fund would be an unlikely outcome of this week’s meeting, a high-ranking E.U. diplomat said.

If that is the case, there will be no change for the time being to the figures Mr. Juncker presented on November 26, for  the new European Fund for Strategic Investments (EFSI) will be endowed with €21 billion, or $25.7 billion, from the E.U. budget and the European Investment Bank (EIB).

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