This is possible as the plan removes investment obstacles ensuring visibility for projects and also providing assistance for investment projects.
The plan was launched in 2014 to reverse the trend of downward low levels of investment. Often financing from the project goes to innovative projects or startups that lack credit history. Thus far the project has been a success.
Investments by the EIB (European Investment Bank) backed by the Juncker Plan’s European Fund for Strategic Investments (EFSI) has created a 0.9% growth for GDP and created 1.1 million jobs.
It is predicted that by 2022, the GDP increase will be 1.8% and the number of jobs 1.7 million. These are the latest expectations created by the Joint Research Centre and the Economics Department.
President of the EU Commission Jean-Claude Juncker commented:
We have achieved what we set out to do: return Europe to solid growth and boost job creation. By 2022, the Juncker Plan will have added 1.7 million jobs to the EU labour market and increased EU GDP by 1.8%. I always said that the Plan was not a cure-all. But with more than one million small-sized companies receiving the financing that wasn’t available to them before, we can be proud.
Who has Received Funding?
So far 12,000 operations have had financing approved and currently, more than one million startups and SME will receive risk financing, these startups are across a broad range of sectors in all 28 EU countries. Some examples include pan-European high-speed charging infrastructure for electric vehicles, to a food waste management company in Romania, to reintegrating former military personnel into the workplace in the Netherlands.
Benefits to Citizens and Business
Not only does the plan provide financing but it also supports EU initiatives and objectives such as climate, social and transport policy. As a result of the Juncker Plan more than 10 million households have access to renewable energy, 20 million EU citizens now have better health care services and 182 commuters are benefiting from better rail and transport infrastructure.
The Juncker Plan not only provides an instant positive effect but will have a long-term economic effect on the whole of the EU. By 2037 the plan has still increased EU GDP by 1.2%, created millions of jobs, improved connectivity, and increased production. The projects and business supported now will, in turn, boost EU competitiveness and growth in the long term.
Image source by American Swiss