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
- Pages
- 132
- Published in
- Germany