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the market environment

24

Annual Report 2014 BME

Re-activate investment in Europe to favour

job creation

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)

110

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2014

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