The European Commissioner Neelie Kroes has proposed a €9.2 billion fund to support the development of a pan‑European, high‑capacity broadband network.
Designed to operate during the 2014–2020 period, the funding would be delivered through equity and guarantees to expand broadband coverage across the European Union. Referred to as the “Connecting Europe Facility” in Kroes’s proposal, the fund aims to stimulate broadband investment and enable pan‑European digital public services.
Kroes explained that roughly €6.4 billion of the total would be specifically earmarked for broadband infrastructure, supplied mainly as equity, loans or guarantees. The Commission and the European Investment Bank (EIB) would participate to enhance project credibility and improve credit ratings by absorbing a portion of the risk.
Officials estimate that the €6.4 billion could be leveraged to generate as much as €100 billion in broadband investment across Europe. The mechanism relies on public investment crowding in private capital, reducing perceived risk for commercial investors and making large‑scale fiber projects financially viable.
The proposal responds to slow rollout rates in several markets. Kroes noted that many telecom operators have so far been reluctant to commit significant funds to fiber deployment, particularly in areas where returns are uncertain. The new facility intends to address that reluctance and accelerate rollout where private investment alone is insufficient.
A primary objective is to support projects that are commercially less attractive—such as deployments in rural and remote areas—where the business case does not currently encourage full private funding. To broaden participation and encourage innovative approaches, the fund would be open to a range of participants beyond traditional telecom operators, including utility companies (for example, water and electricity providers) and public authorities responsible for local infrastructure and services.
By combining public capital with guarantees and equity instruments, the Connecting Europe Facility is intended to lower financing costs and mobilize additional investment at scale. This blended finance model seeks to create sustainable broadband networks that can deliver fast, reliable internet access across diverse regions, stimulate digital services, and support economic and social inclusion.
The approach also aligns with broader EU digital objectives: promoting competition, enabling cross‑border digital services, and ensuring that underserved communities gain access to modern connectivity. Targeted support for projects with social and territorial cohesion benefits is expected to help close the digital divide and promote balanced regional development.
Overall, the proposed €9.2 billion fund aims to act as a catalyst for large‑scale broadband expansion by using public resources strategically to attract private investment, reduce financing risk, and enable infrastructures that might otherwise remain unbuilt.