The European Commission is planning to invest € 50 Billion to revamp digital, transport and energy networks in order to create hundreds of thousands of jobs.
According to The Guardian, the European Commission plans to use bonds backed by the European Investment Bank to invest where governments could not in order to attract private investors.
The European Commission is planning to pay back the taxpayer €4.6 trillion in funding given to the financial sector in the past three years.
“Infrastructure finance in Europe has suffered since the financial crisis and banks face new constraints on long term lending. Project bonds could be a way to attract capital from other investors, such as pension funds and insurance companies, and be a useful addition to traditional financing options,” said EIB president Philippe Maystadt.
The European Commission informed that it would take around €1.5-2 trillion in developing energy, transport and communication networks across Europe. The EC hopes that once it starts investing in these areas then the private funders will follow suite, creating hundreds of thousands of jobs.