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| Juncker reveals giant EU investment plan | Juncker reveals giant EU investment plan |
| (about 2 hours later) | |
| European Commission President Jean-Claude Juncker has given details of a €315bn (£250bn; $393bn) investment plan to kick-start Europe's economy. | |
| At the heart of his five-year agenda is a new €21bn fund, which would be used as "seed money", to entice private backers to "pitch in" most of the rest. | At the heart of his five-year agenda is a new €21bn fund, which would be used as "seed money", to entice private backers to "pitch in" most of the rest. |
| Only €8bn of the original money would come from the EU budget itself. | Only €8bn of the original money would come from the EU budget itself. |
| The project would take the burden off national governments, already facing big debts after the financial crisis. | The project would take the burden off national governments, already facing big debts after the financial crisis. |
| "Europe needs a kick-start and today the Commission is providing the jump leads," he told the European Parliament in Strasbourg. | "Europe needs a kick-start and today the Commission is providing the jump leads," he told the European Parliament in Strasbourg. |
| Critics have already suggested that the scheme is too small, and needs far more hard cash if it is to make a major difference, the BBC's Damian Grammaticas in Brussels reports. | Critics have already suggested that the scheme is too small, and needs far more hard cash if it is to make a major difference, the BBC's Damian Grammaticas in Brussels reports. |
| There was immediate scepticism from the European Trade Union Confederation (ETUC) whose General Secretary, Bernadette Segol, suggested the Commission was "relying on a financial miracle like the loaves and fishes". | |
| She said she did not believe that €315bn could be raised from €21bn, a leverage factor of 15 which the ETUC argued was "almost certainly unrealistic". | |
| However, Mr Juncker said Europe had to face "the challenge of a generation" head-on, without a money-printing machine, describing his plan as the greatest effort in recent EU history to trigger additional investment without changing the rules. | However, Mr Juncker said Europe had to face "the challenge of a generation" head-on, without a money-printing machine, describing his plan as the greatest effort in recent EU history to trigger additional investment without changing the rules. |
| The Commission believes it could create up to 1.3 million jobs with investment in broadband, energy networks and transport infrastructure, as well as education and research. | |
| Illustrating the type of projects he has in mind, Mr Juncker said he had a vision of: | |
| The Commission and the European Investment Bank (EIB) would create the fund's €21bn reserve, according to Mr Juncker, which would then enable the EIB to fund loans worth €63bn. Private investors would be expected to put forward the lion's share of the money, some €252bn. | The Commission and the European Investment Bank (EIB) would create the fund's €21bn reserve, according to Mr Juncker, which would then enable the EIB to fund loans worth €63bn. Private investors would be expected to put forward the lion's share of the money, some €252bn. |
| Mr Juncker's speech came a day after Pope Francis addressed the same parliament, criticising an "elderly and haggard" Europe that had become less and less of a protagonist. | |
| Initial reaction to Mr Juncker's plan came from Chancellor Angela Merkel, who told the German parliament that her government supported the package in principle, but it had to be clear to everyone where the projects were in the future. | Initial reaction to Mr Juncker's plan came from Chancellor Angela Merkel, who told the German parliament that her government supported the package in principle, but it had to be clear to everyone where the projects were in the future. |
| The Commission president, who came to office at the start of November, said he could not promise how much investment would go to each country, but he argued that investment in one country could only be good for growth in another. | The Commission president, who came to office at the start of November, said he could not promise how much investment would go to each country, but he argued that investment in one country could only be good for growth in another. |
| Structural reforms were necessary to modernise Europe's economy and fiscal responsibility was needed to restore confidence in public finance, but now investment had to be boosted as well, he said. | Structural reforms were necessary to modernise Europe's economy and fiscal responsibility was needed to restore confidence in public finance, but now investment had to be boosted as well, he said. |
| The start of the former Luxembourg prime minister's term as president has been overshadowed by his country's role in a tax break row. | The start of the former Luxembourg prime minister's term as president has been overshadowed by his country's role in a tax break row. |
| Hundreds of multi-national firms were reportedly attracted to Luxembourg in legal tax avoidance schemes. Mr Juncker was prime minister at the time but denies wrongdoing. | Hundreds of multi-national firms were reportedly attracted to Luxembourg in legal tax avoidance schemes. Mr Juncker was prime minister at the time but denies wrongdoing. |
| Although a vote against him is due to take place at the European Parliament on Thursday, it is unlikely to attract widespread support. | Although a vote against him is due to take place at the European Parliament on Thursday, it is unlikely to attract widespread support. |