cover image: Boell-Foundation: Making the Great Turnaround work  –  Economic policy for a green and justice Transition

20.500.12592/pd4g11

Boell-Foundation: Making the Great Turnaround work  –  Economic policy for a green and justice Transition

1 Jun 2022

One reason for the hesitancy to move beyond the idea of green growth may be that a productive synthesis of the two poles of pro-environmental narratives has not yet been developed – despite the effots of actors such as the Organisation for Eco- nomic Co-operation and Development (OECD), the European Environment Agency, or the German Environment Agency pushing in this direction. [...] This paper critically examines whether the European fiscal framework will be sufficient to stabilise the macro economy in the aftermath of the abovementioned crises, let alone achieve the goals of a green transition that leads to full capacity utili- sation of the economy (i.e. [...] 5 European Commission (2020), «Communication from the Commission to the European Parlia- ment, the Council, the European Economic and Social Committee and the Committee of the Regions», mission%20Communication%20on%20the%20European%20Green%20Deal%20Investment%20 Plan_EN.pdf.pdf. [...] The depressed economic activity resulting from the fiscal rules led to a reduction in the tax take and an increase in the deficit, while a reduction in GDP reduced the denominator, and thus led to a higher debt-to-GDP ratio overall. [...] the state of low interest rates) and the role of central banks.22 In terms of fiscal space and important macroeconomic conditions – the current state of fiscal rules further ignores that the fiscal costs of inaction in boosting green investments will prove far more costly in the long run.

Authors

Edited by the Heinrich Böll Foundation; ZOE; –; Institute for Future-Fit Economies; and Finanzwende Recherche

Pages
132
Published in
Germany