Policy-makers need to increase public investment in the European Union (EU) for a green shift in European economies to achieve the ambitious climate and energy targets and to make our energy systems less dependent of imported fossil fuels. Reaching the 2030 climate targets requires additional public investment for green purposes equivalent to at least 1% of EU economic output per year. However, the reform proposals of the EU fiscal rules by the European Commission will in all likelihood fail to sufficiently expand the scope for green public investment. What the European community needs is a permanent EU Climate and Energy Investment Fund amounting to at least 1% of EU economic output to finance public investment. Such a central investment capacity would substantially relieve national budgets of EU member states, allow governments to take an important step in the green transition while making it more realistic to comply with EU fiscal rules. Furthermore, it would not only strengthen the community of EU member states economically and politically from within but also promote its geostrategic capacity to act.
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