European Commission incoming head to present new jobs plan

PanARMENIAN.Net - The incoming head of the EU executive, Jean-Claude Juncker, told the European Parliament on Wednesday, Oct 22, that he would present his 300-billion-euro plan for investment to bolster growth and jobs by the end of this year, Reuters reports.

Switching significantly to German during a keynote address ahead of a parliamentary vote to endorse his new European Commission, Juncker said investment was vital to restoring growth and creating jobs. Germany, Europe's dominant economy, is resisting calls for it to spend more to kick-start growth.

Juncker, a conservative former prime minister of Luxembourg, stressed, however, that, as German Chancellor Angela Merkel has said, that much of the 300 billion euros should come from private investors and that governments should continue to contain their budget deficits.

"If you give us your support today, we will present the jobs, growth and investment package before Christmas," Juncker told parliament in Strasbourg, adding that investment should focus on improving economic efficiency, not short-term spending.

Juncker also said that the European Union's budget rules that limit the size of government deficits and public debt will not be weakened. The Commission is preparing a review of the rules and their effectiveness with a report due by the middle of December, while France and Italy are pushing for more leniency in required budget consolidation efforts.

"The rules will not be changed," Juncker said. "But they can be implemented with a degree flexibility." Investment, he said, was only one part of a three-pillar strategy, along with structural reforms of national economics and renewed fiscal credibility for governments.