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.
JEL-Codes:E61, H54, H6, H87
Keywords:EU fiscal framework, EU fiscal rules, green golden rule, green public investment, EU Climate Fund