Report chapters by Paul Brans
Quarterly Report on the Euro Area, 2023
This section discusses the role that the EU fiscal framework may play to promote public investmen... more This section discusses the role that the EU fiscal framework may play to promote public investment. It examines public investment developments in the EU since the mid-1990s and provides estimates of additional public and private investment needs up to 2030 for the green and digital
transitions. The findings of a review of theoretical and empirical literature suggest that Member States public investment appears to have been adversely affected more by concerns on debt sustainability and
related market pressures than by the EU fiscal rules. Still, the fiscal framework may provide stronger incentives to increase and sustain public investment, also during periods of fiscal consolidation.
Considering the large additional investment needs to facilitate the green and digital transitions towards a resilient EU economy the section considers some elements that would strengthen the role of the fiscal
framework in promoting public and private investment spending.
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Report chapters by Paul Brans
transitions. The findings of a review of theoretical and empirical literature suggest that Member States public investment appears to have been adversely affected more by concerns on debt sustainability and
related market pressures than by the EU fiscal rules. Still, the fiscal framework may provide stronger incentives to increase and sustain public investment, also during periods of fiscal consolidation.
Considering the large additional investment needs to facilitate the green and digital transitions towards a resilient EU economy the section considers some elements that would strengthen the role of the fiscal
framework in promoting public and private investment spending.
transitions. The findings of a review of theoretical and empirical literature suggest that Member States public investment appears to have been adversely affected more by concerns on debt sustainability and
related market pressures than by the EU fiscal rules. Still, the fiscal framework may provide stronger incentives to increase and sustain public investment, also during periods of fiscal consolidation.
Considering the large additional investment needs to facilitate the green and digital transitions towards a resilient EU economy the section considers some elements that would strengthen the role of the fiscal
framework in promoting public and private investment spending.