Jean-Claude Juncker to unveil €315bn EU programme Jean-Claude Juncker will unveil a new €315bn plan to resuscitate Europe's economy that will be built on €21bn in EU seed money and rely heavily on financial engineering to mobilise private investment, according to EU officials. The plan, tentatively named the European Fund for Strategic Investment, is the first major initiative from Mr Juncker since taking office this month and has been eagerly anticipated in struggling EU countries that have seen growth projections slashed in recent weeks amid signs the bloc is stagnating economically. The EFSI will seek to leverage small amounts of public money to attract large amounts of private capital. That approach has already caused grumbling in the European Parliament and some weaker EU economies even before the new vehicle has been formally unveiled by the new European Commission president. Commission officials insist the programme is built on sound principles of public finance. As a model, some cite the European Investment Bank, which relies on a relatively small capital base to raise private funds that are, in turn, invested in large infrastructure projects across the EU. The seed money will include €16bn from the EU's existing budget and €5bn from the EIB. It will come in the form of guarantees and will be used to raise private funding that will be invested in higher-risk projects worth an estimated €315bn, according to the plans. EU governments will be able to put their own cash into the fund, meaning the headline figure could rise. Officials cautioned that the plan would not be finalised until the full, 28-member commission endorses it on Tuesday. The name "EFSI" could also be tweaked, though officials said it remains the current working title. It is scheduled to be presented by Mr Juncker to the European Parliament on Wednesday. The EU budget funds would come from several sources, including the "connecting Europe facility" - a €30bn pot currently used to build infrastructure across national borders - and Horizon 2020, the EU's €80bn research and development programme. EU budget reserves would fill out any remaining needs. Commission officials have been forced to construct the plan around an array of political landmines. Countries struggling to climb out of a post-eurozone crisis recession had been hoping for a more ambitious public works programme funded by EU cash. France has argued for €60bn-€80bn in seed funds. Yet there has been strong resistance from northern countries - particularly the UK - keen to ensure the investment programme does not increase the overall size of the EU budget. The scheme has also been structured to avoid any risk to the EIB's triple-A credit rating, something insisted on by Germany. Specific projects will not be announced alongside the new fund, officials said. Instead, plans seen by the FT call for the establishment of a new "investment advisory hub." It will be run by financial professionals - with direction from the commission and EIB - and will decide which projects are ultimately selected. The commission has decided to move quickly to get the vehicle up and running and some of the financing tools have yet to be fleshed out, since many will require legislative or administrative approval. For instance, using the funds as a "first-loss" guarantee, where the EU money would absorb any initial investment losses in an effort to attract private investors looking for more secure upside, will not be part of the initial plan. But it is expected to be one of the enticements that will be offered when the projects are announced. Subordinated loans and equity investments could also be included. The EFSI will not have a predefined geographic allocation, but will target higher-risk projects that the EIB has been wary of financing. The new fund has been structured to avoid the pitfalls of the EIB's €10bn capital increase in 2012, which many southern European countries have railed against, arguing they put additional cash into the EIB only to see it invested in projects in Europe's strongest economies. The plan will be presented to EU leaders at a summit next month, with legislation authorising the new vehicle being proposed in January. Officials hope it will be approved by the middle of next year.