Financing Investment in Times of High Public Debt : 2023 European Public Investment Outlook.

Format:

Book

Author/Creator:

Cerniglia, Floriana.

Contributor:

Saraceno, Francesco.

Watt, Andrew.

Language:

English

Subjects (All):

Public investments--Europe--History--21st century.

Public investments.

Debts, Public--Europe--History--21st century.

Debts, Public.

Infrastructure (Economics)--Europe.

Infrastructure (Economics).

Europe--Economic policy--History--21st century.

Europe.

Physical Description:

1 online resource (250 pages)

Edition:

1st ed.

Other Title:

Financing Investment in Times of High Public Debt

Place of Publication:

Cambridge, UK : Open Book Publishers, 2023.

Summary:

The fourth book in the 'European Public Investment Outlook' series focuses on the urgent issue of how to finance needed investment in critical tangible and intangible infrastructure given high levels of public debt, a thorny problem facing many governments across Europe. Drawing on expertise from academics, researchers at public policy institutes and international governance bodies, the contributors analyse the current situation and prospects and propose feasible solutions. Financing Investment in Times of High Public Debt offers a powerful combination of high-level analysis of cross-continental policies and trends, with close examination of specific contexts in France, Italy, Germany and Spain. The chapters in Part II explore challenges including how to finance climate investments, the extent to which national promotional banks can offer solutions, EU budget reform and recent trends in tax progressivity. This book is essential reading for economists, policymakers, and anyone interested in implementing and financing public policy in Europe and wanting to better understand the intricacies of EU governance and institutions.

Contents:

Intro

Acknowledgements

Preface

Franco Bassanini, Sebastian Dullien, Alberto Quadrio Curzio, and Xavier Ragot

Introduction

Floriana Cerniglia, Francesco Saraceno and Andrew Watt

References

PART I. State of the Art

1. Europe

Andrea Brasili, Atanas Kolev, Debora Revoltella, Jochen Schanz, and Annamaria Tueske

1.1. Public Investment, Current Dynamics, and Plans

1.2 Public Investment in Europe: The Most Recent Data

1.3 Projections of Public Investment and Capital Transfers in Member States' Stability and Convergence Programmes

1.3.1 Projections of Public Investment in Member States' Stability and Convergence Programmes

1.3.2 The Role of Capital Transfers and Investment Grants

1.4 The Role of the Recovery and Resilience Facility (RRF)

1.5 Is the Old Framework 'Biting' with Respect to Plans? Will Member States Diminish their Investment Attitude?

1.5.1 Interest Expenditures are Projected to Rise Slightly

1.5.2 General Government Deficits are Projected to Decline

1.5.3 The evolution of fiscal stance: changes in the structural primary balance

1.6 Congestions and Bottlenecks in Public Investment in EU

1.7 Concluding Remarks

2. Financing Public Investment in France

Mathieu Plane and Francesco Saraceno

2.1 The Historical Evolution of Public Investment

2.2 The Public-Investment Dynamics since the COVID Crisis

2.3 Net Investment Increases but the Pace of Public-Capital Accumulation is Still Low

2.4 General Government Net Wealth: Still Positive but a Strong Decrease Since 2008

2.5 Savings and Investment Financing: The Large Gap Between the Central Government and Local Authorities

2.6 How is Public Investment Financed in France?

2.6.1 Who Does What?

2.6.2 Co-financing is Becoming the Norm

2.7 Is French Public Debt Sustainable?

References.

3. Germany Lacks Political Will to Finance Needed Public-Investment Boost

Katja Rietzler, Andrew Watt, and Ekaterina Juergens

3.1 Situation and Recent Developments

3.2 What Does the German Population Expect? Results from an IMK Survey

3.3 Financing Government Investment Spending

3.3.1 General Overview

3.3.2 Fiscal Situation of the Federal Government

3.3.3 Fiscal Situation of the Federal States

3.3.4 Fiscal Situation of Local Government

3.4 What has Been Achieved under the German RRF Plan?

3.5 Outlook

4. Italy's Public Investments. The NRRP and Beyond

Giovanni Barbieri, Floriana Cerniglia, Enzo Dia

4.1 Introduction

4.2 Italy's NRRP

4.3 Challenges of the NRRP

4.4 Italian Public Finance: Public Investment Beyond the NRRP

5. Public Investment, Deficit and Public Debt in Spain, 1995-2022

Francisco Pérez and Eva Benages

5.1 Introduction

5.2 The Trajectory of Public Investment in Spain, 1995-2022

5.3 From Investment to Capital Accumulation

5.4 Investment and Public Deficit Financing

5.5 Conclusions

PART II. Challenges

6. Escaping Fragmentation and Secular Stagnation. The EU Policy Mix and Investment Financing

Pier Carlo Padoan

6.1 Introduction

6.2 Phases of European Growth

6.3 Secular Stagnation and the Growth Environment

6.4 The NGEU Policy Response

6.4.1 Public Investment

6.4.2 Structural Reforms

6.4.3 Financing Needs and the Role of Private Investment

6.5 Summary and Conclusions

7. From Crisis to Crisis, Can Europe Count on National Promotional Banks as Silver Bullets?

Laurent Zylberberg

7.1 Introduction

7.2 A Particularly Difficult Economic Environment for the European Union

7.2.1 Europe has been Facing Increasing Investment Needs for Many Years.

7.2.2 These Needs are Part of Successive and Sometimes Simultaneous Crises

7.2.3 The European Economic Environment is also Characterised by Other Penalizing Factors

7.3 Assets to Meet These Major Challenges

7.3.1 A Dense Network of Strong, Robust NPBIs Anchored as Close as Possible to the Ground

7.3.2 A Dynamic Started with the Juncker Plan and the Role of the EIB

7.3.3 Enabling NPBIs to Make Full Use of their Potential

7.4 One Step Beyond…

8. Making Green Public Investments a Reality in the EU Fiscal Framework and the EU Budget

Atanas Pekanov and Margit Schratzenstaller

8.1 Introduction

8.2 Fiscal Framework

8.3 Options to Support GPI in the EU Fiscal Framework

8.3.1 GPI Exemption Clause in the SGP

8.3.2 Introduction of a 'Green Investment Golden Rule'

8.3.3 A Benchmark for GPI as a Share of Government Expenditures

8.3.4 An EU Climate Fund

8.4 Green Public Investment in the EU Budget

8.5 Conclusions

9. Financing Climate Investment in the EU: the Role of Monetary and Financial Policies

Yannis Dafermos and Maria Nikolaidi

9.1 Introduction

9.2 Central Banking Tools

9.3 Financial Regulation/Supervision Tools

9.4 Conclusions

10. In Search of Lost Time: An Ensemble of Policies to Restore Fiscal Progressivity and Address the Climate Challenge

Demetrio Guzzardi, Elisa Palagi, Tommaso Faccio, and Andrea Roventini

10.1 Introduction

10.2 Recent Worrying Trends in Tax Progressivity

10.3 Turning the Tide: Policy Tools to Increase Tax Progressivity

10.3.1 Wealth Tax

10.3.2 Capital Gains Tax

10.3.3 Corporate Tax

10.4 Tax Progressivity for a Just, Green Transition

10.5 Conclusions

11. European Public Goods

Marco Buti, Alessandro Coloccia, and Marcello Messori

11.1 Introduction

11.2 Key Features of EPGs.

11.3 Identifying EPGs

11.4 Financing and Delivering EPGs

11.5 Conclusions

12. Options for a Permanent EU Sovereign Fund: Meeting the Climate-Investment Challenge and Promoting Macroeconomic Stability

Philipp Heimberger and Andreas Lichtenberger

12.1 Introduction

12.2 Arguments for a New, Additional, EU Sovereign Fund

12.3 Options for a New European Sovereign Fund

12.3.1 A Permanent EU Investment Fund for Climate and Energy

12.3.2 European Public Goods: Focusing on the Pan-European Dimension

12.3.3 A Rainy-Day Fund for Macroeconomic Stabilisation

12.4 An EU Sovereignty Fund?

12.5 Conclusions

Contributor Biographies

List of Figures

List of Tables.

Notes:

Creative Commons * https://creativecommons.org/licenses/*

Description based on publisher supplied metadata and other sources.

ISBN:

1-80511-201-5

1-80511-202-3

OCLC:

1414210799