Francesca Barbiero, Zsolt Darvas.
The long-term decline in gross public investment in European Union countries mirrors the trend in other advanced economies, but recent developments have been different: public investment has increased elsewhere, but in the EU it has declined and even collapsed in the most vulnerable countries, exaggerating the output fall.
The provisions in the EU fiscal framework to support public investment are very weak.The recently inserted ‘investment clause’ is almost no help
. In the short term, exclusion of national co-funding of EU-supported investments from the fiscal indicators considered in the Stability and Growth Pact would be sensible.
Πηγή: Bruegel