German finance minister Wolfgang Schaeuble said European Commission president Jean-Claude Juncker’s €300bn investment plan requires deregulation to unleash its full potential.
Schaeuble cited energy and the digital economy as areas where the European Commission should come up with proposals for EU member states to ease rules. Investors should be allowed to put their money in electricity grids, Schaeuble said, giving an example.
“If we really want to get a successful initiative under way, it will be necessary to speak about energy union and digital union not only as formulas, but to launch deregulation initiatives that clearly improve the scope for investments,” Schaeuble said. “Tremendous investment amounts can be mobilized if the necessary deregulation steps are taken.”
Chancellor Angela Merkel’s government will inject an additional €10bn in into the economy from 2016 as Germany’s contribution to Juncker’s €300bn spend, expecting this will trigger a multiple in private investment spending, Schaeuble said.
“Three hundred minus 10 is 290, but of course we assume and that’s what everybody says that when we do additional public investments, there will also be additional private investments,” he said.
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