Press Release No. 27/2015 IG Metall calls for more investment in the future of European industry: “Juncker Plan ...

Brussels – To strengthen industry in Europe, IG Metall has called for a substantial expansion of the European Commission’s investment plan, known as the “Juncker Plan.” “The 21 billion euros intended as a kickstart must be significantly increased,” said Wolfgang Lemb, executive board member of IG Metall, on Thursday in Brussels at the industrial policy conference organized by IG Metall and the Hans Böckler Foundation, which was attended by high-ranking representatives from politics and business, including Carlo Pettinelli from the Directorate-General for Internal Market and Industry.

According to IG Metall, Juncker’s investment plan is a good approach to stimulating the economy, but it falls far short of what is needed. Under IG Metall’s plan, increased European investment could be financed primarily from two sources: “First, this could be achieved through a one-time, Europe-wide investment promotion levy on particularly large fortunes, which would generate over 100 billion in additional revenue,” said Lemb. Second, the expansion of the Juncker Plan could also be financed with the billions currently sitting unused in the European Stability Mechanism (ESM) rescue fund. “That’s 80 billion euros that are needed for investments right now. In the ESM, the money is, in a sense, sitting idle until it is supposedly used again to bail out systemically important banks,” said Lemb. Yet there is an urgent need for action now: “First, the Juncker Plan must be expanded into a genuine investment fund that also makes direct investments. Second, the European Fund for Strategic Investments (EFSI) must be expanded into an investment and modernization agency for Europe,” said Lemb. Both measures are urgently needed to create good jobs and maintain competitiveness.

The Juncker Plan has taken up the unions’ calls for a Marshall Plan for growth and employment in Europe. At its core is the “European Fund for Strategic Investments” with an initial capital of 21 billion euros—of which 16 billion euros are guarantees from the EU budget and 5 billion euros are EIB loans. “So far, the plan does not include any fresh, additional funds,” said Lemb. The guarantees are intended to secure private investment in high-risk projects and long-term investments. According to the plan, this should mobilize a total of 315 billion euros in investment.