There is a growing consensus among policy makers that the Union needs to take bold steps to increase investment. There is also significant concern that an effective investment plan would only work with additional funds, appropriate financial instruments and a further increase in the EIB’s capital.
Juncker has now less than one month until the next European Council of Heads of Government (Brussels, 18-19 Dec.) to consider that, when accompanied by continued reduction in government spending and revenue, his €300bn investment package might not be sufficient to stave off secular stagnation throughout Europe.
Finally, Juncker should not forget the pledge for re-industriallisation launched by the Commission during the crisis. This called for industrial production to reach 20% of GDP by 2020. Achieving this target would require a significant turnaround in existing industrial and investment policies.