Copyright

Andrea Brasili, Atanas Kolev, Debora Revoltella, Jochen Schanz, and Annamaria Tueske

Published On

2023-12-12

Page Range

pp. 13–34

Language

  • English

Print Length

22 pages

1. Europe

Chapter of: Financing Investment in Times of High Public Debt: 2023 European Public Investment Outlook(pp. 13–34)
This chapter describes the dynamics of public investment over the review period and its likely path ahead. In 2022, public investment growth largely exceeded total expenditures growth, and it is set to increase further. The reinstatement of fiscal rules (after the deactivation of the General Escape Clause) would not necessarily lead to a decline in public investment thanks to the financial resources provided by the RRF. Meanwhile, there is some tentative evidence that high inflation and capacity constraints in the public administration are slowing the implementation of the RRF. Improving implementation capacity is key for the success of the existing plans and preserving absorption capacity for future investments is crucial for Europe to maintain a leading role in the needed digital, green, and energy transitions.

Contributors

Andrea Brasili

(author)
Senior Economist at European Investment Bank

Andrea Brasili is a Senior Economist at the EIB (Luxembourg) interested in both micro (firm-level) data analysis and macroeconomic developments, particularly those related to fiscal policy. He received his PhD in Public Economics from the University of Pavia (Italy). Before joining the EIB, he worked in the private sector (in Italian banks and asset management companies) as a research economist, whilst still collaborating with academia.

Atanas Kolev

(author)
Principal Advisor at the Economics Department at European Investment Bank

Atanas Kolev is Principal Advisor at the Economics Department of the EIB. He has worked on a wide range of topics related to investment and investment financing at the firm-, sector-, and economy-wide levels. He has been an organiser and contributor to the annual economics conference of the EIB on topics like economic and social cohesion, investment in the energy sector, adaptation to climate change, public investment, and infrastructure investment. Atanas Kolev is currently a coordinator, reviewer, and economics editor for the EIB Annual Investment Report. He holds an Economics PhD from Universitat Autònoma de Barcelona.

Debora Revoltella

(author)
Director of the Economics Department at European Investment Bank
https://orcid.org/0000-0002-8193-9399

Debora Revoltella has been Director of the Economics Department of the European Investment Bank since April 2011. The department comprises thirty economists and provides economic analysis and studies to support the bank in defining its policies and strategies. Before joining the EIB, Debora worked for many years at CESEE, was head of the research department in COMIT, and later worked as Chief Economist for CESEE in UniCredit. Debora holds a PhD in Economics and has also worked as Adjunct Professor at Bocconi University. She is a member of the Steering Committees of the Vienna Initiative and CompNet, an alternate member of the Board of the Joint Vienna Institute, and a member of the boards of SUERF and the Euro 50 Group.

Jochen Schantz

(author)
Senior Economist at European Investment Bank

Jochen Schantz is Senior Economist at the European Investment Bank. After completing a PhD in game theory at the European University Institute, he worked at Lehman Brothers, the Bank of England, and the Bank for International Settlements on monetary and financial stability. At the European Investment Bank, he focuses on public investment and human capital.

Annamaria Tueske

(author)
Economist in the Economics Department at European Investment Bank

Annamaria Tueske is an Economist in the Economics Department of the EIB. Her current work focuses on public investment, climate and energy economics, and sustainable finance. Prior to joining the EIB, Annamaria worked at the University of Luxembourg, at the OECD, and at the Fiscal Council of Hungary. Her academic training focused on industrial organisation, networks, and transport economics; she graduated from the Toulouse School of Economics.