Michael Kemmer on the European Commission’s investment plan
Michael Kemmer, General Manager of the Association of German Banks, on the European Commission’s investment plan unveiled today in Strasbourg.
“More investment in Europe is desirable. The investment plan unveiled today has the potential to provide important impetus in this respect. The European Fund for Strategic Investments (EFSI) could prove especially helpful in areas where private investors find it difficult to assess, or are not in a position to assume, the risks involved. But the impact of the plan should not be overestimated. State guarantees do not make unprofitable investments profitable, but only place a burden on the taxpayer.
The Association of German Banks takes the view that the intended improvements to the investment climate are clearly the more important part of the overall package. Above all, further structural reform is essential at the level of member states.”