The Role of Fiscal Rules in Relation with the Green Economy
Studie von: Österreichisches Institut für Wirtschaftsforschung
Auftraggeber: Europäisches Parlament
To achieve the necessary green transition in the EU, additional public investments by Member States will need to be mobilised throughout the next decade. In light of the macroeconomic environment of very low interest rates, this calls for a reform of the EU fiscal framework. The paper discusses three approaches for a reform of the fiscal rules to better reflect the need for higher (debt-financed) green public investment: (1) an exemption clause for green public investment; (2) the implementation of a green golden rule; (3) a country-specific benchmark share of government expenditures dedicated to green public investment recommended by the European Commission.
Keywords:EU fiscal framework, EU institutions, reform, Green public investment, transition, New Generation EU initiative
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik