We define the notion of strategic investment in the context of the EU, set out conditions for such invest- ment to be co-financed by the EU and make recommendations about what these should be in the EU beyond 2026. [...] Given the importance of the issue of how to finance the EU’s objectives, the discussion goes beyond the two main current tools, the MFF and NGEU, and touches on the wider issue of EU fiscal capacity. [...] The consensus is that public investments have a positive multiplier effect on the economy, but the magnitude of this multiplier effect varies depending on the economic situation, the composition of invest- ments and the economy’s absorption capacity. [...] A hundred dollars of one or a hundred dollars of the other is still a hundred.” The quote illustrates the lack of a common definition of the notion of ‘strategic’. [...] It is worth noting that a big part of the loan compo- nent of the RRF was not taken up by many countries at the start of the RRF, even if for some countries the interest rate charged under the RRF was lower than the market rate.
- Pages
- 51
- Published in
- Belgium
