Public investment growth

Date: 10/07/03

ITALIAN Finance Minister Giulio Tremonti has put forward a new "plan for growth" to be fuelled by public investment.

"This is a critical historical time," he told the European Parliament's economic and monetary affairs committee on Tuesday (8 July). "Alongside reforms we need an investment plan."

But he emphasized that any spending programme would not dilute the EU's Stability and Growth Pact.

"This is not watering down the pact," he said. "There is no question of that. But the pact has to be applied in an intelligent and flexible manner."

The new Italian plan would combine private sector finance with investment from the European Investment Bank in a spending programme for infrastructure, particularly transport networks.

"There is also the question about the intervention of certain public funds," he said.

"State saving funds could be used alongside private capital."

Christa Randzio-Plath, the German MEP who chairs the economic and monetary affairs committee, said it builds upon a 1993 plan on growth, competitiveness and employment put forward by former European Commission president Jacques Delors.

"The ideas are still relevant today," she said. "I believe that this initiative could contribute towards the return to economic growth and to increased employment, at least in the medium term.

"I therefore call on the Ecofin Council [of economic and finance ministers] next week to reflect properly on this initiative," she added

Finance ministers meeting on 15-16 July will discuss the Italian plan.

The Italian Finance Minister, Giulio Tremonti, told the European Parliament's Economic and Monetary Affairs Committee on 8 July 2003 that an investment plan was needed which would combine with investment from the European Investment Bank in a spending programme for infrastructure, particularly transport networks.