Access Investments-European Union- ROMANIA

The new European Commission President, Jean-Claude Juncker, appears to be staking a lot of credibility on an ambitious €315bn (£250bn; $392bn) scheme to boost private investment in European infrastructure projects. It is the top item in the Commission's 2015 work programme, which he presented to the European Parliament on Tuesday.  But so far the reactions have been mostly cautious or skeptical.  There may be more enthusiasm for the plan at the EU summit on Thursday, where government leaders will consider how to make it work.  Many countries, including Germany, have delayed infrastructure improvements. There is an EU-wide need for better transport links, power grid connections, super-fast broadband, and school and hospital improvements.  The Commission is trying to allay any fears about expensive new EU "white elephant" projects, or special favors for pushy politicians. The Commission promises a rigorous cost-benefit analysis by investment professionals, in which growth potential - including job creation - will outweigh any special-interest lobbying.  One difficulty is that the Commission can put relatively little cash upfront, as national leaders are aware that most voters will not stomach much new EU-level spending in these times of economic hardship.  The "seed money" to launch the investment programme will total €21bn - that is, just €8bn of new EU cash, plus €8bn of existing EU budget funds and €5bn from the European Investment Bank (EIB).  The EIB, which has a top AAA rating, will use that money to provide guarantees to investors, the idea being that the EIB will cover the riskiest parts of any project. That is meant to reassure institutional investors and unlock some €315bn of private cash over three years.   The 28 member states have already submitted a huge wish list of projects totaling €1.3 trillion. Some of those submissions are not eligible. A project must be a public-private partnership, not one that is 100% publicly funded.  But at a time of national budget cuts some will ask whether the EIB should be doing this. Some national leaders might treat it as an excuse not to spend public money, relying instead on the EIB to do the heavy lifting.