Connecting Europe Fund Slashed to EUR 1 Billion

The EU’s long-term budget agreed last week will cut funding for the Connecting Europe Facility from EUR 9.2  billion to EUR 1 billion between 2014 to 2020.

“ETNO is disappointed that budget cuts have been made which affect forward-looking initiatives such as the Connecting Europe Facility, and in particular the fund devoted to NGA networks, which have a real role to play in driving Europe out of the current crisis”, says Luigi Gambardella, Chair of ETNO Executive  Board.

“Given the key importance of high speed broadband networks and the potential leverage effect on private network investments of the CEF, this budget cut is a missed opportunity for Europe’s economic recovery.”, added Gambardella. “Investments in wireline networks in Europe in 2011 amounted to EUR 24.8 billion, with ETNO members accounting for 67% of this expenditure. Industry is finding it increasingly difficult to sustain this level of investment in order to meet the goals of the Digital Agenda.”

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