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A German "No" To Juncker Stimulus Plan

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It's not exactly all sunshine and rainbows in Brussels right now.
  • Why it matters

    Why it matters

    The new European Fund for Strategic Investment will wield €21 billion, and smaller E.U. nations fear they will get the short end of the stick when it comes to where to spend the money.

  • Facts

    Facts

    • Jean-Claude Juncker, president of the European Commission, aims to revive the economy through use of a new fund.
    • The commission wants to give permanent status to the planned European Fund for Strategic Investments.
    • Germany’s finance minister wants the fund limited to three years.
  • Audio

    Audio

  • Pdf

A dispute has arisen between Brussels and Berlin concerning the European Union’s new investment plans.

The European Commission wants to give permanent status to the planned European Fund for Strategic Investments (EFSI), but Germany doesn’t.

On Tuesday in the E.U.’s Economic and Financial Affairs Council ECOFIN, Germany’s finance minister, Wolfgang Schäuble, argued the fund should be limited to three years. When investment activity gets going again in the European Union, the fund will no longer be needed, he said.

Jyrki Katainen, the E.U.’s vice president responsible for investments, disagreed, saying no one can know yet how long investment will be low so the E.U. shouldn’t put a time limit on the fund.

ECOFIN’s chairman proposed a compromise: E.U. finance ministers should consider extending the fund in three years.

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