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Last week I participated in two sessions of the Public Services Summit organised by the European Centre of Employers and Enterprises providing Public Services (CEEP), with the overall theme of investment in public services. On the first day of the Summit, Valeria Ronzitti, Secretary-General of CEEP, questioned why the European Investment Plan focuses only on private investments and why public investments cannot be considered alongside the private ones. Vice-President of the European Commission Jyrki Katainen replied that if governments borrow from the European Investment Bank (EIB), their public debts will increase. For this reason, the Commission’s strategy is to attract private investors. However, this does not mean that EIB cannot fund projects submitted by public authorities.

During the debate, two key features of the projects that will be funded in the frame of the Investment Plan were highlighted: the cost of projects to be funded must amount to at least €10 million and EIB can finance only up to 50% of a project. As a consequence, it is not surprising that commercial banks are the usual partners of EIB.

The second day of the Summit saw a session devoted to social infrastructures. Nicholas Schmit, Luxembourg Minister of Labour, Employment and the Social and Solidarity Economy, identified three main sectors that need investment: the digitalisation of public services, the combination of climate change and efficiency policies in housing and infrastructures (e.g. energy efficiency, renewable energy, etc) and social investment. He pointed out that for too long “social” has been associated with expenditure rather than investment. On the contrary, when we invest less in social services, growth is also weaker. Education and healthcare have erroneously been cut. He argued that the Social Investment Package (SIP) launched by former Commissioner Laszlo Andor responsible for Employment, Social Affairs and Inclusion was a great initiative and that it is necessary to link the Investment Plan with SIP. There are opportunities to develop social enterprises as well. The Minister stressed the importance and need to accompany structural reforms that are socially acceptable and supported by sound social policies. He reminded participants that fighting poverty is a priority for the EU, while it has been neglected. Increased poverty is also the result of wrong policies. Macro-economic policies should have been assessed also from a social point of view. It is urgent not to keep postponing the mid-term review of the Europe 2020 strategy. In Europe there is still a need for investment in big infrastructures, but not exclusively. With the Investment Plan it is important to launch a new dynamic for overall investment and growth – but investments have to be made in those sectors that contribute to sustainable and inclusive growth.

The discussion led me to asking the following question: if it is likely that the Investment Plan will support some projects in social infrastructures, what instruments are there to promote social investment in social services, knowing that member states continue cutting services? This trend has not been reversed. The Investment Plan does not encourage public investment, as it will increase public debts.

Ruth Paserman, Deputy Head of Cabinet of Commissioner Marianne Thyssen responsible for Employment, Social Affairs, Skills and Labour Mobility, remarked that there is a dichotomy between social infrastructures and social services. The latter are not the target of the Investment Plan. Minister Nicholas Schmit concluded with further food for thought: are we trying to replace public money with private money? Are we trying instead to launch a new dynamic for investments?

It is clear that the political thinking of Minister Schmit is close to Social Platform’s vision. This is very encouraging as Luxembourg will take over the Presidency of the Council of the European Union in July. My question still remains a crucial one that I hope politicians and the European institutions will commit to finding an answer to with concrete tools.