Not before time

European investment plan

The new president of the European Commission, Jean-Claude Juncker has revealed a €315 billion public- private investment plan for the EU. It is not before time.

“Europe needs a kickstart and today the commission is providing the jump cable,” Juncker told the European Parliament as he announced the new fund which has been described as a cornerstone of his presidency.

He has promised to make jobs, growth and investment the key priority of his five-year tenure in office. It is hoped the plan will give a lifeline to infrastructure projects across the EU which have been stalled through lack of investment.

But there are dangers. A similar growth initiative in 2012 failed to take off because the Luxembourg-based investment bank was reluctant to jeopardise its Triple A rating by loosening lending and investment controls. This time round, it could fail by relying too much on private investors to deliver what is, essentially, a social programme.

Wishful thinking will not achieve prosperity. Real investment will.