Reminder - investment doesn't always have good outcomes:

This based on the EU's proposed special Investment Fund. Points to note:

1. There is no money yet; the first sum to bolster the fund wil be achieved by "re-valuing existing assets";

2. ALL 28 EU countries found something to spend the money on - it only took a few weeks...

3. See paragraph below.

"But the program remains legally dubious, as it creates a massive shadow budget financed by borrowing that will operate parallel to the EU and national budgets, thereby placing a substantial risk-sharing burden on taxpayers. Because every country, regardless of its creditworthiness, can borrow at the same interest rate, projects will be undertaken in countries that recently have burned such huge amounts of capital that they can no longer tap financial markets for funding. Just like the many other “protective” measures taken during the crisis, this distortion of market processes will help to cement the sub-optimal allocation of European investment capital, hampering economic growth for years to come."


Read more at http://www.project-syndicate.org/commentary/ecb-investment-plan-2015-by-hans-werner-sinn-2014-12#VRttPW1h7H3iTqCW.99