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According to the agreement struck between the European Parliament and the Member States, the EU will set aside €230 million in guarantees to support the issuing of bonds for European infrastructural projects.
S&D budget spokesman, Göran Färm, said: "This is indeed good news for Europe in this time of recession and austerity. He continued: "This initiative is a very important step forward that could give some oxygen to the European economy".
"€230 million is not that much, but with a multiplier effect expected of between15 and 20 times in some cases, this could mobilise private investments of more than €4 billion. This is a positive start.
"This is still a pilot phase. We need to find new ways forward to increase investments for growth, and this may be one way.
"We, the Socialists and Democrats Group, are also discussing other ways to mobilise investments, including bonds with more direct EU involvement – European Investment Bonds, otherwise known as 'Delors Bonds'.
"This initiative can give us important knowledge of markets and future needs for investments.
"The idea is to test how the financial markets perceive the initiative and to use the practical experience of the coming 18 months so that the initiative can then be further fine-tuned", he concluded.