France’s Hollande Seeks $100 Billion in Stimulus Funding

The “leveraged” cash is to come from a combination of short-term growth instruments such as project bonds, reallocated EU structural funds and fresh investment capital from the European Investment Bank.

But some European diplomats have already reacted scathingly to the plan, suggesting only a fraction – about €10bn – would be “new money” designed to make the proposal an easy-to-agree “victory” for new French president Francois Hollande.

Mr Hollande submitted his ideas to EU partners and the European Council a few days ago ahead of a Group of 20 summit in Mexico today and tomorrow. Most of Mr Hollande’s proposals for the €120bn will be in a “compact for growth and jobs” to be agreed by EU leaders at a Brussels summit on June 28.

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