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Mr.  Juncker said Europe needed a kick-start and the Commission was offering the jump-leads

He said Europe had to face "the challenge of a generation" head-on, without a money-printing machine, and described his plan as the greatest effort in recent EU history to trigger additional investment without changing the rules.

The plan would take the burden off national governments, already facing big debts after the financial crisis. But they could contribute to the fund if they wished, and would be asked to come up with a list of projects with "high socio-economic returns" that would start between 2015 and 2017.

Illustrating the type of projects he has in mind, Mr.  Juncker said he had a vision of:

 

• Schoolchildren walking into a brand new classroom equipped with computers in the Greek city of Thessaloniki
• European hospitals saving lives with state of the art medical equipment
• French commuters charging electric cars on motorways in the same way as petrol stations are used now
• Households and companies becoming more energy efficient

The Commission and the European Investment Bank (EIB) would create the fund's €21bn reserve, according to Mr Juncker, which would then enable the EIB to fund loans worth €63bn. Private investors would be expected to put forward the lion's share of the money, some €252bn.

Only €16bn of the original money would come from the European Union budget.

However, critics doubt it can attract so much private investment.

There was immediate scepticism from the European Trade Union Confederation (ETUC) whose General Secretary, Bernadette Segol, suggested the Commission was "relying on a financial miracle like the loaves and fishes".

She said she did not believe that €315bn could be raised from €21bn, a leverage factor of 15 which the ETUC argued was "almost certainly unrealistic".

The Commission believes it could create up to 1.3 million jobs with investment in broadband, energy networks and transport infrastructure, as well as education and research.

BERLIN, Nov. 25 (Xinhua) -- German Chancellor Angela Merkel on Tuesday warned that Europe could slide back into recession, German newspaper Frankfurt Allgemeine reported.

"If we do not want to be left behind by the growth markets, then Europe has to hurry up," Merkel told a conference of European family entrepreneurs here.
She called for an early conclusion of ongoing trade agreement negotiations with Canada and the United States.
Given the increasing weight of Asia in the global economy, "Europe is no longer the measure of all things," said Merkel.
She noted that opportunities may outweigh risks once the free-trade agreements with Canada and United States are put into place.