Options to Align the EU Fiscal Framework to Green Public Investment Needs

Atanas Pekanov and Margit Schratzenstaller
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Atanas Pekanov: WIFO

Abstract: The necessary green transition in the EU requires substantial additional green public investment (GPI) by Member States throughout this decade and beyond. This briefing paper discusses four approaches for a reform of EU fiscal rules to better accommodate higher (debt-financed) GPI: first, an exemption clause for GPI; second, the implementation of a green golden rule; third, a country-specific benchmark share of government expenditures dedicated to GPI recommended by the European Commission; and fourth, an EU Climate Fund. We also discuss these options in relation to the recent Commission proposal from November 2022.

Keywords: EU fiscal framework; EU fiscal rules; green golden rule; green public investment; EU Climate Fund (search for similar items in EconPapers)
Pages: 10 pages
Date: 2023-02-17
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:rbrief:y:2023:i:2

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