Unsurprisingly even within the “Brussels bubble” economists cannot agree on the ultimate result of President Juncker’s European Fund for Strategic Investments (Juncker Plan). The mobilisation of additional funding mechanisms – over and above agreed national and EU frameworks – has caused unease with those who have prioritised budgetary consolidation as an immediate policy imperative.
In this debate Germany holds the most important role as Europe’s strongest large economy in 2016. However, this note highlights that fiscal balance and increased investment are not mutually exclusive political actions, but rather form important elements of a sustainable economic policy framework. This is vitally important for all member states, but particularly for Germany, in light of its challenging long term economic outlook.