Europe should stop fetishising fiscal discipline

Alongside other economists and organisations, Sebastian Mang wrote to the Financial Times, arguing against stricter European fiscal ruels:

“A return to austerity would leave the EU unable to make the €520bn a year green investments that the commission says are necessary to meet the EU’s own climate targets, as well as covering the €192bn a year needed for social infrastructure. The cost of climate inaction would lead to a far bigger fiscal burden in the long run as losses from environmental damage mount.”

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