Junker’s Investment Plan raises grave concerns – Ní Riada
Speaking form the European Parliament in Brussels, Liadh Ní Riada MEP for Ireland South asked the current Commissioner for Financial Programming and the Budget, Kristalina Georgieva, how countries that are currently under economical and financial constraints, and who don´t have a pool of private investors or state capacity, are expected to be able to benefit from Junker´s Investment Plan.
Ní Riada said:
“I am extremely concerned and wary of this plan as I believe the substantial risk lies with public finances. Only projects that can´t get finance from EIB/EU finance can avail of loans from this new fund which means that this plan is geared for more private, high risk investment.”
“Let me be clear, Sinn Féin are in favour of public investment in the real economy. We need to support SMEs. However, this proposal however is not the way to go about it as it will create nothing more than a financial bubble and a false economy.”
“Have we not learnt anything from the past? We came to this juncture by feeding a virtual economy by consistently creating virtual financial instruments. What we need is true and concrete regulation of the market, to channel funds from the financial sector to support sound-real economy projects; solid regulation that could lead to a more sustainable economy. An economy that works for 99% of the people as opposed to the 1% it currently favours.”
“I would worry about the effect that this will have on existing EU programmes. It is certainly an extremely high risk investment. It seems that once again it is simply ´business as usual´ and this instrument will only be of service of those who need it the least.”