Jean-Claude Juncker will unveil a new €315bn plan to resuscitate Europe’s economy that will be built on €21bn in EU seed money and rely heavily on financial engineering to mobilise private investment, according to EU officials.
The plan, tentatively named the European Fund for Strategic Investment, is the first major initiative from Mr Juncker since taking office this month and has been eagerly anticipated in struggling EU countries that have seen growth projections slashed in recent weeks amid signs the bloc is stagnating economically.
The EFSI will seek to leverage small amounts of public money to attract large amounts of private capital. That approach has already caused grumbling in the European Parliament and some weaker EU economies even before the new vehicle has been formally unveiled by the new European Commission president.