TY  - BOOK
AU  - Dabrowski,Cara
AU  - Heimberger,Philipp
TI  - 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
T2  - wiiw Policy Notes and Reports
PY  - 2025///
CY  - Wien
PB  - Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw)
KW  - Public investment
KW  - growth
KW  - unemployment
KW  - public debt
KW  - European Union
KW  - Austria
KW  - Belgium
KW  - Bulgaria
KW  - Croatia
KW  - Cyprus
KW  - Czechia
KW  - Denmark
KW  - Estonia
KW  - Finland
KW  - France
KW  - Germany
KW  - Greece
KW  - Hungary
KW  - Ireland
KW  - Italy
KW  - Latvia
KW  - Lithuania
KW  - Luxembourg
KW  - Malta
KW  - Netherlands
KW  - Poland
KW  - Romania
KW  - Slovakia
KW  - Slovenia
KW  - Spain
KW  - Sweden
N2  - 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

UR  - https://wiiw.ac.at/p-7398.html
ER  -