EU to revise broadband financial framework

EU countries could see more cash injected into broadband infrastructure if a European Commission (EC) proposal is accepted by the EU Council and the European Parliament.

The plan will see the financial structure of the EU revised to channel the €5 billion needed for the Economic Recovery Plan into both broadband investment and energy interconnections.

This money will come from the EU's agriculture budget for this year and next, and will be resourced to competiveness for growth and employment in 2009 and 2010.

According to the EC, this cash would have been unspent if it was left in agriculture and using it means the EU's budget ceiling is maintained.

Dalia Grybauskaite, EU commissioner for financial programming and budget, said that the proposal was about "putting a much-needed €5 billion into European energy interconnections and faster internet, helping to boost economic recovery in the EU".

He added that he was "confident" that both the Council and European Parliament will "make the necessary funds available by the end of this year".

According to the latest figures from telecoms watchdog Ofcom, UK broadband connections reached 16.6 million this year.