An EU investment fund for economic resilience and sustainable competitiveness

Background

The European Commission estimates that achieving the 2030 climate targets will require annual investments amounting to 4% of GDP. In a new set of recommendations adopted in September, the European Economic and Social Committee (EESC) called for pressing action to address the critical funding shortfall threatening the EU’s climate and digital transformation goals. By establishing an EU investment fund, mobilizing private investment with public funding, and balancing fiscal policy and strategic investments, Europe can secure its competitiveness, reduce external dependencies, and create a more resilient single market.

Key points

In the opinion, the EESC

• recommends creating a dedicated EU investment fund within the next Multiannual Financial Framework (MFF). This fund could be supported by contributions from member states, new EU own resources, and joint debt issuance, and should allocate resources based on clear social criteria;
• emphasises the importance of public funding as a catalyst to unlock private investments, particularly in sectors that are not yet profitable, such as green energy and strategic infrastructure like energy grids and hydrogen pipelines;
• advocates for complementing the EU’s fiscal rules (Stability and Growth Pact) with a robust investment strategy, ensuring long-term climate and digital transition goals are met without compromising fiscal sustainability;

Additional information

- EESC section: Economic and Monetary Union and Economic and Social Cohesion (ECO)

- Opinion type: Own-initiative opinion

- Rapporteur: Dominika BIEGON (Workers - GR II Germany)

- Reference: ECO/629-EESC-2024

- Date of adoption by section: 6/09/2024

- Date of adoption in plenary: 18-19/09/2024

Contact

Thomas Kersten

Press Officer

Tel.: +32 (0) 2 546 8931

Email: thomas.kersten@eesc.europa.eu

Krisztina Perlaky-Tóth

Policy Officer

Tel.: +32 (0) 2 546 9740

Email: eco@eesc.europa.eu