02551nam a22006257u 4500 pwiiw7398 OSt 20260517120211.0 251008t2025 au ||||| |||| 00| ||eng d OSt eng E32 D84 F02 Q41 Q43 Q48 jelc Dabrowski, Cara Achieving geoeconomic goals by boosting the economy without raising the public debt ratio? New evidence on the effects of public investment in the European Union Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2025. 21 S., 1 Table and 3 Figures, 30cm. wiiw Policy Notes and Reports 99 Public investment can support geoeconomic policy goals by strengthening economic resilience through the creation of public assets and by fostering domestic sources of economic growth. This paper presents new evidence on how public investment affects output, unemployment, private investment and public debt in the 27 EU member countries. Using forecast errors based on archival data to identify public investment shocks, we find that expansionary shocks (a) have favourable effects on output and unemployment in the short to medium run; (b) do not crowd out private investment; and (c) do not jeopardise public debt sustainability. Even though fiscal consolidation pressures linked to EU fiscal rules are high, promoting public investment may be critical – not only for economic development, but also to advance geostrategic goals in energy, infrastructure and resilience. Public investment growth unemployment public debt European Union Austria Belgium Bulgaria Croatia Cyprus Czechia Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Romania Slovakia Slovenia Spain Sweden Macroeconomic Analysis and Policy Heimberger, Philipp 99 WIIW0000092 wiiw Policy Notes and Reports https://wiiw.ac.at/p-7398.html P 9146 9146 0 0 0 0 BIB BIB 1 2025-10-08 pwiiw7398 0 99 1000010007398 2025-10-08 00:00:00 2025-10-08 P