Opinion – EUR315 Billion – Investment Plan – European Commission

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

This is the latest update from the European Commission on the EUR315 Billion investment plan. It’s worth a read. Check it out!

via EUR315 Billion – Investment Plan – European Commission.

Much of my professional life was involved with preparing or reviewing investment plans.

Whilst I commend the initiative which is desperately needed because financial markets and banks seem to be risk averse or looking for easy money from consumers, rather than helping small businesses grow.

The good news is that EUR315 Billion has been earmarked for investment.

However, reading the various links, I’m left with the cynical view that the European Commission wanted to publish an update whilst most people are on holiday or focused on other things.

Sadly, this initiative is a very long way from delivery of investment funds to the businesses that are most desperate for funding. Since the financial crash of 2008, Europe’s investment for small and medium businesses (SMEs) has been seriously problematic. Remember it’s SMEs that typically create jobs, so this matter is acute. Countries like Spain and Greece have youth unemployment at >50%.

Here are some questions that readily come to mind?

  1. What are the assumptions?
  2. How will funds be allocated most effectively?
  3. What about guarantees, like in the UK for housing loans and small businesses?
  4. Is there an underlying industry strategy?
  5. Will economic best-practice prevail, or will political considerations sway allocation?
  6. What about governance?
  7. What about the best practices to be deployed?
  8. How will investments be monitored?
  9. How will the allocation process ensure maximum investment and minimum leakage to advisors like banks, lawyers and consultants?
  10. How will the allocation strategy be matched to the strategy to create sustainable jobs?

Thoughts?

Opinion – Yanis Varoufakis faces criminal prosecution over clandestine ‘Plan B’ currency plot – Telegraph – John Gelmini

If Varoufakis has genuinely done something wrong, then let him be tried and convicted, if there is evidence.

Dr Alf is right to suggest this, however, if this vain and economically incompetent man is to be tried and punished assuming he is convicted, then others who are equally culpable need to be brought into the frame as well. These includes those who gerrymandered the figures which allowed Greece to enter the Euro in the first place, Goldman Sachs for participating in the subterfuge and subsequent window-dressing, those in the Greek Government and other Governments who looked the other way and should, given their positions and supposed intelligence, have known what was going on and put a stop to it.

The guilty must include those in the IMF who went along with this charade and of course the 5 Greek plutocratic families who allegedly stole much of their country’s money and then left European taxpayers to foot the bill.

Varoufakis is an arrogant buffoon but to say “All the sins of the people ” must be heaped on his head, whilst allowing the rest of the scoundrels a clear escape is grossly unfair, and means that the guilty get away once more as they did after the last financial crash, where they doubled their money having apparently laundered it through 40 different tax havens and transmuted it into gold, gems and real property, much of it in London.

John Gelmini

Follow

Get every new post delivered to your Inbox.

Join 5,638 other followers