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Friday, 23 September 2016

The European External Investment Plan: more than old wine in a new bottle

Europe is at last fully converted to the merits of boosting investment in order to achieve sustainable growth. The EU is doing so with an internal investment plan (commonly referred to as the Juncker Plan or as the European Fund for Strategic Investments (EFSI), writes San Bilal. San Bilal is the Head of the European Centre for Development Policy Management (ECDPM) Economic Transformation and Trade Programme. In his State of the Union address, European Commission President Jean-Claude Juncker announced the doubling of its duration and its amount, to at least €500 billion. Complementary to this initiative, the European Commission (EC) has proposed a parallel European External Investment Plan (EEIP). Focused on the EU’s neighbourhood countries and Africa, the EC proposes that the European Union (EU) dedicate €3.35 billion from its budget and the European Development Fund (EDF) to the EEIP by 2020 in the hope of leveraging €44 billion from development finance institutions, institutional and private financiers. That may go up to €88 billion if EU member states agree to chip in.

Source: euractiv.com