A Targeted Golden Rule for Public Investments? A Comparative Analysis of Possible Accounting Methods in the Context of the
Review of Stability and Growth Pact
Completed research studies
Commissioned by: European Parliament
Study by: Austrian Institute of Economic Research
Closed: 2023
The necessary green transition in the EU requires substantial additional green public investment (GPI) by member countries
throughout this decade and beyond. This briefing paper discusses four approaches for a reform of EU fiscal rules to better
accommodate higher (debt-financed) GPI: (1) an exemption clause for GPI, (2) the implementation of a green golden rule, (3)
a country-specific benchmark share of government expenditures dedicated to GPI recommended by the European Commission, and
(4) an EU Climate Fund. We also discuss these options in relation to the recent Commission proposal from November 2022. This
document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.
