Financing a Sustainable and Competitive Economy: Next Steps for the EU

A restructuring of the global economy towards lower carbon goods and services is under way. The EU’s global competitiveness hinges on consistent investment in the accelerated transformation of its energy sector and industrial base. At the same time, reducing current differences between Eastern and Western Europe in terms of the economic risks and opportunities of the transition is crucial for the  continued  stability  of  the  eurozone.  This  policy  brief  argues  that  the  EU needs to fully align public and private financial flows behind this transformation and to support this by assessing and managing the macroeconomic, fiscal and monetary impacts of the transition.

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