EU budget dispute?

There is both praise and concern in Europe over plans for a new fund to cover transport, energy and telecoms infrastructure projects.
February 28, 2012 Read time: 2 mins
There is both praise and concern in Europe over plans for a new fund to cover transport, energy and telecoms infrastructure projects. Certain regions have expressed alarm at the infrastructure fund, saying that it could sideline work currently being approved by national authorities. Talks for this new infrastructure fund have been held in Brussels. However, the EU's Commission for Regional Policy has stated that the fund would not draw from existing regional funding.

The aim of the new fund is to pay trans-European transport (TEN-T) projects, as well as energy and telecommunications. The budget for this fund for the 2014-2020 time-frame could be as high as some ?16 billion. Some regions have expressed concern that the fund could mean a loss of influence for regional governments in the use of EU funds. "We are pleased that the Commission has finally proposed a coherent framework for financing the EU's most badly needed infrastructure projects," said Luisa Todini, president of the 6164 European Construction Industry Federation (FIEC) reacting to the unveiling by the Commission of the next EU multi-annual financial framework. Todini gave her support for the proposed "Connecting Europe" facility and spelled out clearly that the construction industry will, ".fight to safeguard the proposed amount of €40 billion," in coming negotiations between the European Parliament and Council. "Thanks to this ad-hoc Facility, €31.6 billion will be dedicated to transport infrastructure alone", explained Todini, "and in addition to this, about €24 billion should further come from the Cohesion Fund. Altogether, this means that a minimum of €55 billion should be dedicated to transport infrastructure over the period 2014-2020, that is, more than the €50 billion available under the current financial framework." Furthermore, FIEC considers that the promotion of EU project bonds through this Facility is also encouraging.

"However, in spite of the support which we can expect from the European Parliament, we are a bit worried about the outcome of the negotiations which are starting now", Todini cautioned. "For the last multi-annual financial framework, the Commission proposed €22 billion to finance the Trans-European Transport Network, but we ended up with only €8 billion." "According to the Commission, it is estimated that about €200 billion is needed to complete the trans-European energy networks, €540 billion needs to be invested in the trans-European transport network, and over €250 billion in ICT over the 2014-2020 period," Todini added.

For more information on companies in this article

Related Content

  • US Senate approves federal highway programme
    June 24, 2014
    In the US, the Senate Environment & Public Works Committee has made a key move by approving a six-year reauthorisation of the federal highway programme. This is a landmark political step and is likely to have been the subject of much cross-party negotiation. The move will be of major importance for the transportation construction industry, which has suffered badly from low levels of business in recent years. This six-year package will provide a major stimulus to business for contractors and equipment firms
    Read More
  • EU project looks at highway parking areas
    February 24, 2012
    Under the EU-funded LABEL project there will be an analysis of secure trucking stops. The European Union Road Federation (ERF) - International Road Federation (IRF), Brussels Programme Centre, looks at what it can achieve Whenever we have to travel long distances by car we are faced with the prospect of having to stop in order to refuel our vehicle and to rest a bit. As a consequence motorways can boast the presence of a high number of service stations, usually spread out at 20 to 30km intervals, ready to
    Read More
  • Czech project set to benefit from EU fundin
    February 14, 2013
    A highway project in the Czech Republic looks set to benefit from EU funding. The highway is being established under a public private partnership model and will receive €700,000 of co-financing from the TEN-T Programme. The project was selected for funding under the 2011 TEN-T Annual Call. The funding will be used for a series of legal, financial and technical studies that will support the Czech authorities in planning its highway. The study will evaluate the construction, operation and maintenance through
    Read More
  • ERF and Greek associations team up for road safety event in Athens
    March 12, 2015
    The ERF has teamed up with the Greek road safety associations to organise the Technical Conference on Road Infrastructure Safety Equipment in Athens this month. The financial crisis took its toll on Greek infrastructure development and by 2011 the government had frozen key motorway projects aimed at completing the Greek Trans-European Road Network. But following lengthy negotiations between Greek authorities, financial institutions and the European Commission, a deal was struck in 2014 to re-launch these im
    Read More

Highlighted Content