Project Bonds: let's pave the way for a responsible stimulation of growth in Europe

At its plenary session in Strasbourg, the European Parliament today approved by a large majority (579 in favour, 32 against, 9 abstentions) the launching of a pilot phase for bonds aimed at financing projects ('project bonds").

"Budgetary stability policies will only bear fruit if they are accompanied by stimuli measures based on a smart use of available resources", said Dominique Riquet MEP, EPP Group Spokesman on the dossier.

"Project bonds are a perfect example of such policies, as they will apply to sectors with high employment and competitiveness potential such as transport, energy, and broadband", he added.

Project bonds will not create any additional expenses as they will be financed through the use of existing budgetary lines of up to €230 million. In attracting private capital through a credit enhancement mechanism, the EU contribution, combined with that of the EIB, should make it possible to gather more than €4 million.

"This input of private capital is more than necessary because the sovereign debt crisis is making available public money more scarce. This is maybe the beginning of a mixed financial economy as a solution to the crisis", he explained.

"However, we will not enter into a new cycle of debt at the expense of more virtuous countries", Dominique Riquet underlined. "Project bonds are not Eurobonds, but really private debt, which is issued in order to support sustainable projects which only need a European boost", he concluded.