Policy Article
The EU investment plan: economic impulse or flop? (in German)
Kiel Policy Brief, 96
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Business Cycle Euro Area
European Union & Euro
Fiscal Policy & National Budgets
Growth
Innovation and Structural Change
The Kiel Institute’s researcher Ulrich Stolzenburg analyses the potential of the newly launched EU investment plan to stimulate economic activity. He raises severe doubts because some of the projects would have been realized anyway, while others will at least partly crowd out of privately financed projects. Furthermore, he argues that EU support for strategic infrastructure investment is rather a permanent task and not a temporary one in times of crisis.
