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 With Europe's economy barely growing and disenchanted voters turning
increasingly to anti-EU radicals, the European Commission president
pledged the money in July and promised to act when he took office
three weeks ago.
The European Parliament confirmed on Friday that Juncker would
present the plan to it in Strasbourg at 9 a.m. but as EU officials
prepared a for weekend of negotiation on both that and separate
budget issues, it remained unclear how much hard cash the Union
would invest.
Sources have said the plan may involve just 20-30 billion euros
going to a vehicle supervised by the European Investment Bank.
Intended to soak up any losses, this could attract 10 to 15 times as
much in private funding for infrastructure projects.
As the European Central Bank signals a will to pump money into the
economy, such a limited injection of new public cash - some of which
may already have been earmarked for investment - could disappoint
investors hoping for more stimulus.
But the Commission is constrained by states' finances. Those include
heavyweights France and Italy, whose persistent deficits have raised
a risk of penalties when their 2015 budgets are reviewed. A plan to
announce the outcome of the annual review of states' budgets on
Monday is likely to be put back until after a meeting of the
Commission in Strasbourg on Tuesday.
Some officials warn Paris it may be fined. German commissioner
Guenther Oettinger wrote in France's Les Echos daily that the EU
should be tough on Paris. French Finance Minister Michel Sapin said
that was "not very constructive".
Le Monde newspaper cited unidentified sources as saying that Paris
would avoid penalties for now and be given some months to
demonstrate greater efforts.
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Also next week, Commission officials will be working on a revised
2015 budget for the European Union, after a dispute between member
states and parliament sank a previous draft. Some states want to
recoup funds from the EU budget to help cut their deficits - a move
the European Parliament is resisting.
Adding spice to the Commission's excursion to Strasbourg, aside from
a visit by Pope Francis to parliament on Tuesday, Juncker faces a
censure debate there on Monday and a no-confidence vote that could
dismiss his whole team on Thursday.
Called by Eurosceptics to punish Juncker, formerly Luxembourg's
prime minister, for his country's role in helping firms avoid tax,
the challenge has little chance of success because most other
parties do not support it.
(Editing by Ruth Pitchford)
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