The EU Allocates € 100 Billion to the European Future Fund to Boost the European BusinessSociety | August 26, 2019, Monday // 08:27| views
The European Union is setting up a € 100 billion fund to invest in strategic industries where the community lags behind its global competitors. This is written by the British Financial Times, which has managed to get acquainted with the relevant EU documents.
The so-called European Future Fund will fund Member States' investments in leading industry groups and competing companies, corporations such as Google and Apple, as well as Alibaba.
The establishment of such a fund must be in response to calls by France and Germany to "create such instruments for an offensive industrial policy" to protect European business from unfair competition.
The project's authors also point out that companies outside the EU "have unprecedented financial resources, which could cripple the EU's innovative dynamics and the industrial situation of the community in certain sectors." These are overseas tech giants such as Google, Apple, Facebook, Amazon, as well as China's Baidu, Alibaba and Tencent, which dictate the global digital industry.
"There are no such companies in Europe. And this poses a risk to Europe's economic growth, jobs and influence in key strategic sectors, "EU documents state.
“The emergence and leadership of private non-EU competitors, with unprecedented financial means, has the potential to obliterate the existing innovation dynamics and industrial position of EU industry in certain sectors,” read the plans for the new fund.
“The operating mode of the fund would have a long-term, equity based focus with a commercial, profit-oriented model,” the Commission writes, adding that “this will allow the fund to meet the strategic objective of supporting European champions while maintaining financial stability.”, Politico reported.