Pier Carlo Padoan

Published On


Page Range

pp. 99–112


  • English

Print Length

14 pages

6. Escaping Fragmentation and Secular Stagnation

The EU Policy Mix and Investment Financing

  • Pier Carlo Padoan (author)
The EU has been impacted by multiple crises due to economic and geopolitical drivers. These crises have left scarring effects and may lead to fragmentation with serious permanent consequences. This takes place against the background of secular stagnation which makes the policy response more difficult. The main response strategy is the NGEU mechanism, based on public investment and structural reforms. It should deliver sustainable growth and structural change that allows for exit from the multiple crises―pandemic, geopolitical, energy, inflationary―and puts the European Union on a path of twin transformation (digital and green), reverting the drift towards secular stagnation. NGEU is an effective policy tool, provided it acts through policy packages of public investment and structural reforms and allows for time to complete the reform cycle. Its effectiveness must be seen in the context of a new policy mix fit to address the multiple-crises framework.


Pier Carlo Padoan

Full Professor of Economics retired at Sapienza University of Rome
Member of the Luiss Institute for European Analysis and Policy at Università Luiss Guido Carli

Pier Carlo Padoan has been the Italian Minister of Economy and Finance and a Member of the Chamber of Deputies of the Italian Republic. Since April 2021, he has held the role of Chairman at UniCredit. He is Full Professor of Economics retired at the La Sapienza University of Rome. Currently, he is Vice President of Istituto Affari Internazionali, a board member of the Institute of International Finance, a member of the Luiss Institute for European Analysis and Policy, and a member of the BoD and Executive Committee of ABI. In 2021, Padoan was also appointed a member of the Board of Istituto Luigi Einaudi and of the Committee for Corporate Governance of Borsa Italiana. He is currently a member of the European Financial Services Round Table and of the Executive Committee of Assonime. In May 2022, he became Chairperson of the High Level Group on Financing Sustainability Transition, which is part of the High Level Groups on EU Policy and Innovation. He has been Deputy Secretary General and Chief Economist of OECD and Executive Director of the International Monetary Fund. He has held academic positions at the University of Rome, College of Europe (Bruges and Warsaw); Université Libre de Bruxelles, University of Urbino; Universidad de la Plata; Chulalongkorn University; and the University of Tokyo.