Creating jobs, boosting investment and achieving sustainable economic growth has been the Juncker Commission’s number one priority since it took office in November 2014.
With a 15 per cent drop in investment in the aftermath of the financial crisis, we took immediate action and launched the Investment Plan for Europe, or the Juncker Plan, together with the European Investment Bank Group. Since then, the plan has mobilised €380 billion of additional investments – two-thirds of which are provided by the private sector. It has already helped create 750,000 jobs and with the efforts of national and regional authorities boosted the EU GDP by 0.6 per cent.
These figures are expected to double by 2020, allowing businesses to create jobs, thrive and innovate.
In Malta, the business environment has continued to improve year on year since Malta became an EU member in 2004, with productivity increasing, and small and medium businesses growing.
The investment plan has made a significant contribution to these results. It has triggered €34 million in investment in Malta and Gozo. And not only is this investment that would have not taken place otherwise, but it has also clearly supported the jobs of tomorrow and small firms that would otherwise have difficulties finding financing.
An agreement signed with APS Bank will allow the bank to provide cheap loans to 12 innovative Maltese start-ups and small businesses.
Another project backed by the Investment Plan will open the way for STMicroelectronics, a semiconductor manufacturer, to invest in research, development and innovation. This way it will be able to play an even more important role in fields that are crucial for the future, such as smart driving. It means creating jobs for Maltese and Gozitans.
Nevertheless, the Investment Plan can do more in Malta, just like in other countries. It offers a lot more opportunities for companies to explore and benefit from.
Micro and small firms are predominant across Malta and Gozo. They are the true backbone of the economy. In terms of their value added and the jobs they generate, Maltese small and medium firms have continued to grow, but because of their small size, the limits of the domestic market and their reliance on internal funding, they do not always have the means to innovate as much as they could.
Economic stimulus also puts pressure on the environment, on transport and other critical infrastructure
That is precisely where the Investment Plan can help and pool private and public money for projects that will help Maltese businesses to grow and become European and global pioneers.
In Malta it is clear that economic stimulus also puts pressure on the environment, on transport and other critical infrastructure.
These are yet again fields where European support can play a big role. Infrastructure projects and projects that boost sustainability are at the very heart of the goals of the Investment Plan.
There are tools available to businesses and authorities to make better use of the Investment Plan. The European Investment Advisory Hub was set up to help potential applicants get their ideas off the ground. It provides technical assistance to project promoters, be it public authorities or private companies.
Furthermore, the European Investment Project Portal is an easily accessible and free database of mature projects looking for investors. We encourage Maltese businesses to fully seize these opportunities.
The Investment Plan will run until 2020, but the Commission has already proposed its successor to make sure Europe continues to invest in people, research and innovation, infrastructure and small businesses.
The new InvestEU Fund will bring together all existing EU financial instruments make EU funding for investment projects simpler to access and more efficient. It is expected to trigger at least €650 billion in additional investment across the EU over the 2021-2027 EU budget period.
With the help of the Investment Plan, we have already managed to cover roughly one third of the investment gap in Europe, and InvestEU will allow us to do more.
InvestEU means building the future that we want for Europe and for Malta: one of economic prosperity, environmental sustainability and of quality, sustainable jobs.
On March 5, we will both be addressing a Business Breakfast at the Excelsior Hotel that is intended to discuss how countries like Malta and industry across the islands can benefit from European investment plans and allow for Maltese and Gozitan industries to discuss their reality on the ground.
We hope to see many of all there.
Roberta Metsola is a member of the European Parliament. Jykri Katainen is European Commission vice-president.
This is a Times of Malta print opinion piece