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BackOn Tuesday, the “Investments” Task Force, set up by the EU, published a report, which attributes an enormous investment potential to Europe. According to this report, there are over 2,000 projects with a combined investment potential of EUR 1,300 billion. EUR 500 billion could be implemented in the next three years alone. However, the danger is that many projects will not make it beyond the planning stage.
The EU Task Force “Investments”, which is made up of representatives of the EU States, the EU Commission and the European Investment Bank (EIB), has published a report that lists over 2,000 investments projects with a total value of EUR 1,300 billion, which the EU could finance over the coming years and/or which are regarded worth being supported. However, this list should not be confused with Juncker’s €315 billion investment plan, as the Task Force report does not include firm commitments regarding the projects; in fact it deals with proposals, which have been submitted by the Member States.
The projects are coming from the sectors Innovation, Energy, Social Issues and Climate Change. It is the main point of the undertakings that they are transparent, ensure European Added Value and that they are economically viable.However, it is not yet clear to what extent this project selection will interact with Juncker’s investment plan, as there are already certain expectations by EU Member States, which did participate in drawing up this list. Another point is the financial feasibility and implementation of the investments projects. The relevant decision making process had not been completed yet; hence it was still possible to involve the public sector or private investors. However, it is easily conceivable that some of the projects, due to financial or regulatory problems, get stuck in the planning phase. According to information from those close to the EU Commission it is apparently not planned to promote or support any projects, which the Member States have already made a start on or which they are about to tackle. It remains to be seen whether this will prove to be possible. Now, the projects submitted so far are being examined by the EU Commission as to whether they are worth investing in. One expects a result probably by mid next year.
Investments projects in Austria
With regard to Austria, the Task Force report lists 19 projects, which combined amount to a sum of EUR 28 billion. Among other, the recommendations include the following investments: extension of the Karawanken railway tunnel (EUR 300 million), thermal rehabilitation (3.6 billion), the Pump Storage Hydro Power Plant Pfaffenboden in Molln (400 million) and the connection of S7 motorway in Fürstenfeld to the A2 (600 million). However, taking a closer look at the project list, it becomes apparent that these concern predominantly projects, which are in progress already and which are being described as new projects even though they do not contain any substantial alterations. Above all, it also raises cause for concern that in comparison to other countries not a single project in Austria can be found in the social infrastructure sector.
Further information:
Task Force Report
List of Austrian projects (page 2-6)
The projects are coming from the sectors Innovation, Energy, Social Issues and Climate Change. It is the main point of the undertakings that they are transparent, ensure European Added Value and that they are economically viable.However, it is not yet clear to what extent this project selection will interact with Juncker’s investment plan, as there are already certain expectations by EU Member States, which did participate in drawing up this list. Another point is the financial feasibility and implementation of the investments projects. The relevant decision making process had not been completed yet; hence it was still possible to involve the public sector or private investors. However, it is easily conceivable that some of the projects, due to financial or regulatory problems, get stuck in the planning phase. According to information from those close to the EU Commission it is apparently not planned to promote or support any projects, which the Member States have already made a start on or which they are about to tackle. It remains to be seen whether this will prove to be possible. Now, the projects submitted so far are being examined by the EU Commission as to whether they are worth investing in. One expects a result probably by mid next year.
Investments projects in Austria
With regard to Austria, the Task Force report lists 19 projects, which combined amount to a sum of EUR 28 billion. Among other, the recommendations include the following investments: extension of the Karawanken railway tunnel (EUR 300 million), thermal rehabilitation (3.6 billion), the Pump Storage Hydro Power Plant Pfaffenboden in Molln (400 million) and the connection of S7 motorway in Fürstenfeld to the A2 (600 million). However, taking a closer look at the project list, it becomes apparent that these concern predominantly projects, which are in progress already and which are being described as new projects even though they do not contain any substantial alterations. Above all, it also raises cause for concern that in comparison to other countries not a single project in Austria can be found in the social infrastructure sector.
Further information:
Task Force Report
List of Austrian projects (page 2-6)