Growth must still be funded...somehow

"Growth: Brussels is trying to regain control" says Les Echos, which believes that the Summit of heads of state and European governments on May 23 will be an opportunity for the new French president, François Hollande, to "clarify his position on the ‘renegotiation of the fiscal pact.'” The French business daily says that:

After a worrying time about this 'renegotiation' European officials are saying today that they are now willing to help the French president complete the treaty of fiscal discipline through a growth initiative. Indeed, the 'claims' made by François Hollande reassured Brussels, because the projects already underway continue.

Les Echos adds that the President of the European Commission, Jose Manuel Barroso, said that he is happy to benefit from the opportunity created by the arrival of François Hollande to encourage a boosting of investment, provided it does not go back on the necessary deleveraging.” However, the paper warns:

This sudden urge to increase growth projects, however, risks clashing with the reality of public finances. For the EIB to recapitalise, 10 billion euros must be found, while in order to reallocate unspent structural funds, the states would have to transfer to Brussels the 82 billion they promised but have yet to hand over due to delays. And that is without including the 80 billion euro bill for building up capital for the future European Stability Mechanism (SPM). (...) Without cash in the coffers, the growth debate is about toeing a fine line between budgetary discipline and plunging into recession.

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