The European Commission today proposed spending €5 billion of unspent funds from the EU’s budget to stimulate the economy while building for longer-term energy security and wider broadband access across the continent.

“The EU’s Recovery Plan is all about ’smart investment’ — a short-term stimulus targeted on long-term goals,” said Commission President José Manuel Barroso. “We need to learn the lessons of the recent gas crisis and invest heavily in energy. We also need to stimulate the European economy by providing information highways in rural communities.”

The proposal calls for:

• €3.5 billion for carbon capture and storage investments;
• €1.75 billion for gas and electricity interconnection projects;
• €1 billion to extend and upgrade broadband Internet access in rural parts of Europe;
• €500 million for offshore wind projects; and
• €500 million for a “health check” of the Common Agricultural Policy, with a focus on the new challenges posed by climate change, renewable energy, water management, biodiversity and dairy restructuring.

Tags: economy, eu