Ursula von der Leyen and BlackRock Present Their New Tulip Bubble
Jan. 14, 2020 (EIRNS)—EU Commission President Ursula von der Leyen disclosed the Commission financing plan for the “Green New Deal” on Tuesday in Strasbourg, France.
The plan consists in issuing “guarantees” for a total of €47.5 billion (€38 billion from the EU budget and €9.5 billion from “partners”) which should leverage up to €650 billion investments. In its budget proposal, the Commission has included a €15 billion reserve for losses.
Guarantees mean that if a private investment goes bankrupt, the EU covers the losses or part of them.
However, the EU budget has not yet been approved and is still the object of negotiations. Germany and other countries oppose any increase in the budget, while France and others want to include nuclear power as part of the climate-friendly investments.
Timed with von der Leyen’s press conference in Strasbourg, BlackRock CEO Larry Fink announced “a significant reallocation of capital” away from the carbon-economy into so-called green investments, reported AP. BlackRock is the world’s largest asset managers, with an incredible $7 trillion in assets under management. In his regular letter to CEOs today, Fink wrote that BlackRock is taking immediate action, exiting investments in coal used to generate power, and it will begin asking clients to disclose their climate-related risks. “Because capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes to the climate itself,” Fink wrote in the letter. “In the near future—and sooner than most anticipate—there will be a significant reallocation of capital.” He further declared that “we are on the edge of a fundamental reshaping of finance.”