European Commission president, Jean-Claude Juncker, presented his much anticipated “investment plan for Europe” on Wednesday in the European Parliament. The European Fund for Strategic Investments (EFSI) plays a key role in the plan. Mr. Juncker, the newly installed E.U. executive branch president, hopes the EFSI, endowed with €21 billion, or $26 billion, will increase growth and create more jobs in the 28-nation bloc.
The economic outlook for Europe, especially the euro zone, has bleakened in recent months and some southern European countries have not yet properly recovered from the debt crisis of 2011 and 2012. National unemployment levels are still as high as 25 percent.
Mr. Juncker wants to use the capital stock to trigger private capital investments of at least €315 billion in the coming three years for infrastructure and research projects as well as innovative businesses.