So Juncker did not come up with any new money, presenting his 315 bn investment plan.
Of course, he didn´t.
He doesn´t have any money.
As commission president, he´s not supposed to have any money.
EU institutions can´t raise money.
Theyr´re not allowed to tax citizens or companies.
They´re not allowed to borrow money.
They´re not allowed to produce euro bonds or EU bonds, to raise money.
Also, the EU is not allowed to run a deficit.
So what possibilities remain?
The EU commission could ask member states to hand over 300 bn euros…no, just having a laugh, that´s not going to happen.
Mr Juncker could, as his predecessor Mr Barroso did to please French president Hollande, redistribute EU funds already allocated and call it a growth plan.
That would not be very clever however, since the top priority for most EU funds is growth and jobs.
So Mr Juncker came up with a plan banking on the creditworthiness of the EIB and the EU, setting a small sum aside (EUR 21 bn), basically as guarantees, and then asking the EIB to raise 60 bn on the back of that, to be steered towards projects where the private sector – if all goes well – comes up with the rest.
That should give something along the lines of 15 private euros to the 1 EU euro.
Can that really work?
Sounds extremely optimistic to me, but then I´m no expert on financial markets.
Still, on the upside, Mr Juncker won´t have wasted much of tax payers money trying.