Funding the transition: EU’s fiscal governance reform could boost green spending

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Ramping up green investments to meet climate change targets will require massive private and public funding across the EU in coming years. However, public debt rules currently in place across the bloc could be hampering those investments. Against this backdrop, and with a review of the EU’s Stability and Growth Pact (SGP) – a set of fiscal rules designed to ensure that EU countries do not spend beyond their means – underway, the creation of a new European climate fund could help member states to raise capital and support the union’s energy transition drive, speakers at a recent event said.

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