Tunnel 'makes it tough for European projects'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BRUSSELS - The European Commission warned that the experience of trying to raise private funds for the Channel tunnel will make it harder to finance the European Union's planned infrastructure projects, writes Sarah Lambert.
Henning Christophersen, Commissioner for Economic Affairs, said: 'The lesson we have learnt about the Channel tunnel is that there must be a clearer division of labour and responsibility between the public authorities, the operators, contractors and financiers. The experience has made investors far more wary - our task will, as a result, be all the more difficult.'
The Commission plans to implement 10 trans-European network projects, approved by EU member states to help stimulate the European economy. The projects - seven rail links, two roads and an airport - include the extension of the fast TGV train line linking eastern France through Paris, Metz and Strasbourg into Germany.
The cost overrun of the first phase beyond the EU budget of ecus32bn ( pounds 24bn) will not all be met by private investors. The Commission reckons they will only be prepared to pick up 20 per cent of the shortfall.
Mr Christophersen suggested the gap could be closed by offering investors guarantees underwritten by the EU budget, or by raising loans in capital markets.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments