MEPs and Council of Ministers strike deal on Juncker's investment plan
A deal struck by MEPs and Council of Ministers negotiators in the small hours of Thursday morning means the architecture of the Juncker plan to unlock 315 billion euros public and private investments can now be put to a European Parliament vote on 24 June, the Parliament said in a press release. 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 (EFSI) made up of 5 billion euros capital and a 16-billion euros guarantee fund. cep expert Philipp Eckhardt, however, believes 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 latest cepBlog on the matter.