To achieve the necessary green transition in the EU, additional public investments by Member States will need to be mobilised
throughout the next decade. In light of the macroeconomic environment of very low interest rates, this calls for a reform
of the EU fiscal framework. The paper discusses three approaches for a reform of the fiscal rules to better reflect the need
for higher (debt-financed) green public investment: (1) an exemption clause for green public investment; (2) the implementation
of a green golden rule; (3) a country-specific benchmark share of government expenditures dedicated to green public investment
recommended by the European Commission.
Keywords:EU fiscal framework, EU institutions, Green public investment, New Generation EU initiative, reform, transition
