No decision on fiscal rules: EU Finance Ministers putting ideology over speedier and fairer transition

Sebastian Mang, senior policy officer for the New Economics Foundation said:

“Today, Christian Lindner and other fiscally conservative politicians have put ideology over the future of the planet. The evidence that the EU needs to increase green public investments for a speedier and fairer transition is overwhelming — but it’s being ignored by politicians who are more concerned with arbitrarily restricting public investments.

“EU Finance Ministers must recognise that not all debt is equal. Debt directed towards financing the green transition is an investment that pays for itself. Green public investment can transform our economies, attract new green manufacturing, create good quality jobs and reduce the cost of living through more efficient homes, more accessible public transport and better public services. By strengthening our economies, green public investments can contribute to long-term debt-sustainability.”

As NEF research has shown, green investments have a larger multiplier than other investments, meaning they pay for themselves in the long run, and they can support debt sustainability. Green investment now reduces the risk of costly climate disasters in the future, the EU can’t afford not to support these investments.

Notes

The New Economics Foundation is a charitable think tank. We are wholly independent of political parties and committed to being transparent about how we are funded.

NEF research showing the ability of member states to borrow to meet climate commitments can be found at https://​newe​co​nom​ics​.org/​2​0​2​3​/​0​4​/​b​e​y​o​n​d​— t​h​e​— b​o​t​t​o​m​-line

A media briefing on the fiscal rules from the New Economics Foundation and various partner organisations can be found here: https://​www​.youth​fo​rum​.org/​f​i​l​e​s​/​2​0​2​4​1​0​2​4​-​M​e​d​i​a​-​B​r​i​e​f​i​n​g​_​-​E​U​-​F​i​s​c​a​l​-​R​u​l​e​s​-​R​e​f​o​r​m.pdf