EU Commissioner for Economy Paolo Gentiloni unveiled a 75 billion euro ($83 billion) investment scheme on Friday that would double the EU budget guarantee to boost the resilience of critical industrial supplies
MOSCOW (Pakistan Point News / Sputnik - 29th May, 2020) EU Commissioner for Economy Paolo Gentiloni unveiled a 75 billion euro ($83 billion) investment scheme on Friday that would double the EU budget guarantee to boost the resilience of critical industrial supplies.
The InvestEU proposal initially envisaged using 38 billion Euros in EU guarantees to pool 650 billion in public and private investment to support four main policy areas so-called windows that are: sustainable infrastructure; research, innovation and digitization; small and medium businesses; and social investment and skills.
"We propose now to almost double the InvestEU guarantee from the previous 38 billion euros to now 75 billion euros with the fifth window," Gentiloni told reporters in Brussels.
The new strategic European investment window will be used to cater for the future needs of the EU economy and to secure the bloc's strategic autonomy in key sectors. The European Commission expects the new commitment to generate a further trillion euros in additional investment between 2021 and 2027.
Gentiloni said EU-wide fiscal tools were needed to help member states cope with the economic aftermath of the coronavirus epidemic. He warned that pursuing national policies risked undermining investment, which was the first victim of the fiscal consolidation that accompanied the sovereign debt crisis a decade ago.
