Sunday, October 16, 2011

EU to reveal ?50bn infrastructure jobs plan

10:30 AM | Posted by ProJ | | Edit Post

EU hopes of ? 50 billion investment in digital, energy infrastructure and transport to attract private funding and create hundreds of thousands of jobs

The EU has launched this week its intention to invest ? 50 billion (£ 44 billion gift) in the digital upgrade, power grids and transportation, the creation of hundreds of thousands of jobs in the coming years.

The European Commission intends to use bonds backed by the European Investment Bank (EIB) to fill gaps left by the funding problems of liquidity and private investment to governments.

plans, which will be announced Wednesday, are designed to return to taxpayers for help and guarantees of ? 4.6tn that the financial sector in the last three years. Despite this support funded by taxpayers, venture capital investments in Europe fell last year for only ? 3 billion.

EIB President Philippe Maystadt said: "The financing of infrastructure in Europe has suffered from the financial crisis and banks are facing new restrictions on the obligations of long-term debt could be a project to attract capital from other investors, such as pensions. funds and insurance companies, and to be a useful complement to traditional financing options. "

The EC argues that the development of intelligent infrastructure may require up to ? 2 billion of 1.5 technologies in transport, energy and information and communication trans-European. This course is about the size of the fund in euros of aid discussed by finance ministers of G-20 this weekend.
  • Most of the funds announced this week (about ? 32 billion) would transport infrastructure, with 9 billion ? each for energy, including intelligent network infrastructure and broadband and digital services.
  • broadband high-speed receive ?
  • 7000000000 between 2014 and 2020 - enough, according to Neelie Kroes, Commissioner of the Digital Agenda, to take more than 50 billion ? of public and private investment reducing the risk of the project.
Kroes said that the money would be largely in the form of equity, debt or guarantees provided by the EU and the EIB, which improves the credit rating of projects. They proposed not only for telecom operators, but the services of water and electricity, cooperatives or construction companies.

The goal, officials said, is to support investment in infrastructure projects less obvious attractions of broadband, such as remote rural areas.

The EU believes that ? 270 billion investment required to achieve its 2020 target of broadband to 30 megabits per second for all Europeans and 100 Mbps for half of them.

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