European Parliament approved investment plan with large majority
The European Parliament on Wednesday approved the compromise regarding the architecture of the European Fund for Strategic Investments (EFSI), the so-called 'Juncker Plan', by 464 votes to 131 with 19 abstentions.
The compromise was reached by MEPs and the Council of Ministers last month. Parliament’s negotiators scaled back cuts in the EU’s “Horizon2020” research and innovation program and Connecting Europe Facility. Presented last November, the Juncker Plan aims to create a European Fund for Strategic Investments made up of 5 billion euros capital and a 16-billion euros guarantee fund.
cep expert Philipp Eckhardt believes, though, that the EU approach is fundamentally flawed. “The investment plan solves none of the real problems which stand in the way of higher net investment,” Eckhardt argues. “To the contrary, the plan involves a significant risk of a misallocation of resources.” See also our cepBlog on the matter.