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INVESTMENT DRIVE FOR EUROPE - Fair Fiscal Policy for the Digital and Ecological Transformation
Even before the coronavirus pandemic and its widespread economic consequences hit, the Federation of German Industries and the German Trade Union Confederation jointly called for an ambitious public-sector investment drive in Germany to guarantee an economy viable for the future and to secure prosperity and employment. The European Union faces the same challenge. Without more public investment, climate neutrality and the digital transformation of the economy and society cannot be achieved. The European Commission estimates that annual public investment in the triple-digit billion range will need to be mobilised for this transformation. But what room for manoeuvre do the Member States have and how can the EU contribute? Could the experience with the “Next Generation EU” reconstruction fund provide guidance?

With the upcoming review of the Stability and Growth Pact, the EU is faced with the central
challenge of how, on the one hand, to promote economic recovery from the pandemic and ensure the necessary investment, and how, on the other hand, to guarantee a sound and sustainable fiscal policy .

Interpretation available in German.

Oct 26, 2021 06:30 PM in Brussels

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