0

Growing inequality in wealth, income, and opportunity, together with concerns over the benefits of globalization, has fuelled growing discontent.

We need new ideas to make growth and development more inclusive, allowing whole communities to thrive.

Public investment to support long-term economic growth in the EU.

Public investment in the EU has decreased since the beginning of the crisis, especially in countries which needed to undergo fiscal consolidation. The authorities at different levels often face challenges in choosing optimal investments and expenditure in times of limited means. The economic literature, although sometimes inconclusive, suggests pre-conditions that make public investment beneficial to growth, such as high quality of public expenditure. Large government size appears to be negatively correlated to growth but certain public investments (for instance in infrastructure or innovation) and productive expenditure (such as on education and health) often seem to have long-term positive impacts on the economy. In the current context, increased investment may boost demand and stimulate the economy in the low-interest-rate environment.

  • Why do we need an Investment Plan?
  • Where does the money come from?
  • Investment in what, exactly?

EU Debates! You?
Your opinion counts!

Comments

Leave a reply

Your email address will not be published.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

More in Economy

You may also like