President of the European Commission Jean Claude Juncker has unveiled a €300bn investment plan that aims to revive the flailing European economy and promote further growth, without piling on more public debt.
‘Europe needs a kick-start,’ Juncker said. ‘And the European Commission is applying the jump-leads.’
He believes that the continent is caught in an ‘investment trap’, whereby private investors are hesitant to commit funds, despite having enough liquidity to do so.
But by providing some assurances to absorb initial risks for key projects which could improve Europe’s infrastructure, Juncker thinks that more private investment can be drawn out.
After Juncker’s announcement, the president of the European Investment Bank, Werner Hoyer, said that his institution was ready to work quickly to get funds flowing.