Saturday , October 16 2021
Home / Bruegel Think Thank / A green fiscal pact

A green fiscal pact

Summary:
How can the European Union increase green public investment while consolidating budget deficits? By: The Sound of Economics Date: September 29, 2021 Topic: European Macroeconomics & Governance Past crises and consolidation episodes have resulted in major public investment cuts. However, in order to meet the European Union’s climate goals, the additional public investment needed is between 0.5 percent and 1 percent of GDP annually during this decade. How does the EU grapple with just how far-reaching the economic implications of the green transition will be? In a paper presented at the recent ECOFIN in September, Bruegel Director Guntram Wolff and Senior fellow Zsolt Darvas advocate for a ‘green golden rule’, that exempts net green public investment from the debt and deficit

Topics:
The Sound of Economics considers the following as important: , , , , ,

This could be interesting, too:

T. W. writes Global Economic Resilience: Building Forward Better

The Sound of Economics writes Will ‘common prosperity’ address China’s inequality?

M. D. writes The inconsistency in global strategic relations

Alicia García-Herrero and Simone Tagliapietra writes Xi’s pledge on financing coal plants overseas misses point

How can the European Union increase green public investment while consolidating budget deficits?

By: Date: September 29, 2021 Topic: European Macroeconomics & Governance


Past crises and consolidation episodes have resulted in major public investment cuts. However, in order to meet the European Union’s climate goals, the additional public investment needed is between 0.5 percent and 1 percent of GDP annually during this decade. How does the EU grapple with just how far-reaching the economic implications of the green transition will be?

In a paper presented at the recent ECOFIN in September, Bruegel Director Guntram Wolff and Senior fellow Zsolt Darvas advocate for a ‘green golden rule’, that exempts net green public investment from the debt and deficit rules of the Stability and Growth Pact. They explain more in detail with Yuyun Zhan in today’s episode.

Read more:

Darvas, Z. and G. Wolff (2021) ‘A green fiscal pact: climate investment in times of budget consolidation’, Policy Contribution 18/2021, Bruegel

Sound Money Economics System was a fringe political party in Manitoba, Canada, during the provincial election of 1941.

Leave a Reply

Your email address will not be published. Required fields are marked *