the market environment
Annual Report 2014 BME
Re-activate investment in Europe to favour
Most analysts believe that the fall in the value of the
euro against the dollar will continue in 2015, which
will favour European exports, but not sufficiently to
compensate the burden of the lack of domestic activity.
Europe, especially the eurozone, faces the challenge
of combining the ageing of its population and the
sustainability of its welfare structure with measures
to boost job creation, that is, basically investment. The
IMF claims that perhaps it would be necessary to relax
pressure on the tightening of the public deficit and on
gains in competitiveness via salary decreases in those
countries involved in tough reforms and adjustments
in recent years, to enable consumption and invest-
ment to gather an impetus which it has not yet gained.
Despite German reticence, the European Commission
has taken up the gauntlet and launched an investment
support programme which aims to mobilise nearly
€315,000 million between 2015 and 2017, mainly
earmarked at transport and energy sector projects.
The programme involves the creation of a European
Fund for Strategic Investments, combined with
measures to channel projects and resources aimed
thereat, while regulatory obstacles are eliminated
to favour the EU as an investment destination. With
€8,000 million from the EU and €5,000 million from
the EIB, plus a programme of public guarantees, the
Plan intends to arouse the interest of private capital
and capture nearly €270,000 million for its ends (85%
of the amount announced).
The price of petrol falls in 2014.
Brent crude (MT)