The European Union's executive body said Wednesday that it wants to spend some (euro) 50 billion ($70 billion) over the next decade on transportation, energy and telecommunications projects to better link its member states across national borders.
The proposals come against a backdrop of a continent wide financial crisis that has prompted heavy criticism of public spending by the EU at a time when national governments are slashing budgets.
EU Commission President Jose Manuel Barroso insisted, however, that the Connecting Europe initiative is necessary to overcome the limits of national governments often looking to serve their own electorate first and disregarding multinational plans that would profit the 500 million EU citizens as a whole.
"We are closing the missing links in Europe's infrastructure networks that otherwise would not be built," Barroso said, adding that by putting forward the funds for 2014-2020, "we are making a down payment for Europe's future growth and jobs."
Barroso also launched the idea for special bonds to boost the programs. He said that in a pre-2014 phase, the Commission wants to use up to (euro) 230 million ($320 million) of its budget to mobilize private investment of some (euro) 4.5 billion ($6.2 billion).
The overall plan and bond financing received a mixed response.
Guy Verhofstadt, the leader of the ALDE liberal fraction at the European Parliament, said Wednesday's "project bonds launch is a welcome and overdue step in the right direction."
"If we want to stimulate growth and job creation in Europe, we have to get on with upgrading our major infrastructure networks and be creative about attracting third party investment," he said.
Germany, the economic juggernaut of the 27-nation EU, insisted, though, that transport network development was foremost the responsibility of the private sector.
"A broad financing of network expansion through the EU budget cannot in any case not be a solution from a regulatory point of view," said Philipp Roesler, Germany's minister for the economy and technology.
The Connecting Europe plan seeks to invest (euro) 31.7 billion ($43.9 billion) in the transport sector to let the network of roads, trains and waterways better connect across borders to create a smooth single market.
The plan has earmarked (euro) 9.1 billion ($12.6 billion) for energy investments for such initiatives as offshore electricity grids and pipeline projects to bring gas from the Caspian region. It also plans for (euro) 9.2 billion ($12.7 billion) to back investment broadband networks and digital services across the EU.
