The economic crisis of 2008 and the ensuing investors lack of confidence led to the creation of the European Investment Plan, known as the Juncker Plan, in order to provide the necessary guarantees for the rapid recovery of the highest risks investments in Europe.
Operational in 2015, the Juncker Plan initial input was 21 billion euro of public credits and it is supposed to mobilize 315 billion euros by 2018, thanks to the leverage effect. At the end of 2016, and based on the first positive results, President Juncker asked the doubling of this capacity to reach at least 500 billion euros of investments by 2020.
Concrete results of the Juncker Plan
At mid-term, the figures released by the European Investment Bank (EIB) at the end of January 2017 indicate that the timetable is being respected. In total, 164 billion euro of investments were triggered by the Plan. But how can we know that the Plan has allowed the financing of the most risky projects, as it was promised? The publication of the results by the EIB can not confirm this.
The Juncker Plan provides funding for two groups of investments: large-scale infrastructure and innovation projects and funding related to SMEs.
420 operations in 28 Member States have been validated since 2015. In France in 2016, 37 projects benefited from the Plan for about 3 billion euro, which is expected to generate a total of 15 billion euro investments. Juncker Plan had to revive the investment in the countries that are most in difficulty. However, Portugal, Greece and Cyprus are the least represented in the projects financed. The United Kingdom is the leading supplier of infrastructure and innovation.
The Plan provides also other benefits. For example, the Commission has created the European Portal for Investment Projects, the EIPP, where project promoters can apply online to be put in direct contact with investors.
Juncker Plan – a game changer?
The published figures prove the success of the Juncker Plan and the Commission’s ability to be a driving force for investment. The Plan is not only about the investment process but also about a more conducive environment to more investment.
On the European agenda there is also an issue about foreign investments. This question will be discussed for the first time at the Summit of 22 and 23 June 2017. For Member States, there is no question of prohibiting these investments, which demonstrates the importance of these investments whatever is the origin of the funds.