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Promoting European Public Goods

Roel Beetsma, Marco Buti
CESifo, Munich, 2024

EconPol Forum 25 (3), 37-41
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  • EU economic policies need to be fundamentally reoriented to deliver European public good (EPGs) in economic and non-economic areas. To attain that, an approach that overcomes the sterile debate between risk reduction and risk sharing is needed
  • “Genuine” EPGs in the area of the green and digital transitions would be financed by a new Fund of some EUR 750bn to be established as a follow up of Next Generation EU, access to which would be conditional on adhering to the revised fiscal rulebook
  • A systematic review of the various existing instruments at the EU level to stimulate investments should be carried out. Where feasible, collecting the EU financing instruments into a single facility would substantially improve the market perception of EU debt
  • In many areas, progress is held back not so much by a lack of available financial resources at the EU level as by a lack of coordination among national governments. In areas such as defense, stepping up the supply of EPGs requires the coordination of national policies rather than additional EU funds
  • Achieving such goals would also help enhance the role of the EU in global governance. The agenda we put forward will require political leadership and a long-term time horizon

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