EP vote on Infrastructure project bonds:
- extracts from the vote
- statement by Göran FÄRM (S&D, SE), rapporteur
EP Committee on Budgets
Lieu: Brussels, Belgium - EP
End production: 31/05/2012 First transmission: 31/05/2012
The EU supports the issuance of "project bonds" for EU infrastructure with €230 million in guarantees. MEPs and EU governments' outcome of negotiations allow, once the decission will be approved by the Plenary of the EP, to start the pilot phase after this summer, conceived to attract private investment in transport, energy and information technology network projects.
Up to €4.6 billion in private investment could be mobilised thanks to these loans and guarantees, in terms of an expected multiplier ratio of between 15 and 20. Final vote will be held in the plenary session in July.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||External shot of the EP, Brussels
||Ambience shots during the vote on the political agreement for the 'project bonds', report by Göran FÄRM, cutaway on the rapporteur.
||Ambience shots during the voting session at the EP BUDG Committee (5 shots).
||SOUNDBITE (English) Göran FÄRM (S&D, SE), rapporteur: "We have voted on the first reading agreement between the EP and the Council on the pilot phase for project bonds. And this means that this agreement has to be approved by the Plenary of the Parliament, but we were completely united in the Committee, so I don't think it will be a problem. This means that the pilot phase can start after summer. And we need one and a half year to test the idea of project bonds on the market, so that we know that it works before we take a more permanent decision on the system of project bonds. The reason why we need project bonds is that investments in the Europe have been falling over a long period of years, and particularly, of course, during the last years, during the economic crises. And as Governments have budget problems, banks cannot give them as much loans as they did because we have more restrictions on banks, we need new ways of financing investments, and that is where the project bonds come in".
||SOUNDBITE (English) Göran FÄRM (S&D, SE), rapporteur: "This will not change things in the short term. It will take years before all of those investments project are up and running. But we have to start now, because otherwise we will just prolong the problem. So this is really one of the key points; one of the strategic points of a new job and growth strategy, and that is why it is important for the EP".