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EU seeks billions of euros to revive economy
(MENAFN- Arab News) MILAN: The European Union sought ways on Saturday to marshal billions of euros into its sluggish economy without getting deeper into debt considering options from a pan-European capital market to a huge investment fund.
With Europe's economy struggling to recover from the worst financial crisis in a generation EU finance ministers tasked the European Commission the EU executive and the European Investment Bank (EIB) to draw up a list of projects that would create growth and decide how to finance them.
"We have given a mandate to the Commission and the EIB to swiftly present an initial report on practical measures that can be taken on profitable investment projects that are justifiable" Italy's economy minister Pier Carlo Padoan told a news conference.
Ministers are expected to discuss the projects and investment tools at their next meeting in Luxembourg in October.
There were no details of what those projects might be.
To finance them the ministers discussed four ideas: An Italian paper on new financing tools for companies a Franco-German proposal on how to boost private investments a Polish proposal on creating a joint EU fund worth 700 billion euros ($907 billion) and a call from incoming European Commission President Jean-Claude Juncker for a 300-billion euro investment program to revive the European economy.
The European Central Bank's plan to resurrect a market for asset-backed securities would be another financing tool.
"We don't have a magic wand but we need growth we need to stimulate demand without taking on debt" France's finance minister Michel Sapin told reporters after the gathering in Milan. "We need the right mix of public and private money."
The European Union's economy which generates about a quarter of global output grew by just 0.1 percent last year and its jobless rate is almost double that of the United States with around 25 million people unemployed.
Investment is the new buzz word among ministers overriding the German mantra of budget cuts. Germany is under pressure from France and Italy to loosen the fiscal reins and use its overflowing government coffers to ramp up public investment.
With Europe's economy struggling to recover from the worst financial crisis in a generation EU finance ministers tasked the European Commission the EU executive and the European Investment Bank (EIB) to draw up a list of projects that would create growth and decide how to finance them.
"We have given a mandate to the Commission and the EIB to swiftly present an initial report on practical measures that can be taken on profitable investment projects that are justifiable" Italy's economy minister Pier Carlo Padoan told a news conference.
Ministers are expected to discuss the projects and investment tools at their next meeting in Luxembourg in October.
There were no details of what those projects might be.
To finance them the ministers discussed four ideas: An Italian paper on new financing tools for companies a Franco-German proposal on how to boost private investments a Polish proposal on creating a joint EU fund worth 700 billion euros ($907 billion) and a call from incoming European Commission President Jean-Claude Juncker for a 300-billion euro investment program to revive the European economy.
The European Central Bank's plan to resurrect a market for asset-backed securities would be another financing tool.
"We don't have a magic wand but we need growth we need to stimulate demand without taking on debt" France's finance minister Michel Sapin told reporters after the gathering in Milan. "We need the right mix of public and private money."
The European Union's economy which generates about a quarter of global output grew by just 0.1 percent last year and its jobless rate is almost double that of the United States with around 25 million people unemployed.
Investment is the new buzz word among ministers overriding the German mantra of budget cuts. Germany is under pressure from France and Italy to loosen the fiscal reins and use its overflowing government coffers to ramp up public investment.
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