EU Barroso: EIB Capital Boost Could Unlock Big Investments

BRUSSELS (MNI) – Boosting the European Investment Bank's capital by
E10 billion could unlock investments worth E180 billion, equivalent to
1.5% of the EU's GDP, European Commission President Jose Manuel Barroso
said on Thursday.

Increasing the capacity of the EU's policy lender, is a key measure
proposed by the Commission to facilitate targeted investments in energy,
transport and communications infrastructure and in small businesses
across Europe. An increase could be approved by EU leaders at a summit
focused on economic growth to be held in Brussels on May 23.

Another proposal by the Commission for so-called project bonds, in
which EU funds would be used to entice private investor participation in
infrastructure projects, could attract up to E4.6 billion for key
projects, Barroso said.

Speaking at the United Nations in New York city, Barroso said that
the European Union would do “all it takes” to ensure Greece remained in
the Eurozone, but that “we expect the Greek government – current and
future – to fulfill the jointly agreed conditions for financial
assistance.”

“We fully respect the will of the Greek people but also the will of
the 16 [other] Euro area countries which, through their parliaments,
have agreed on the conditions of financial assistance,” he said.

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