By and large, setting a new green golden rule would be a useful addition to the existing EU fiscal framework.
The pandemic has increased the net lending position of the German corporate sector. By incentivising private investment, policymakers could trigger a virtuous cycle of increasing wages, decreasing corporate net lending, which would eventually lead to a reduction of the economy-wide current account surplus.
In this episode of the Sound of Economics Live Italy's Minister for Ecological Transition, Roberto Cingolani outlines his priorities for the upcoming COP Summit.
What will be necessary to achieve climate goals and keep growing?
The ultimate answer to the question on whether climate change can be tackled without ditching economic growth depends on our willingness to step up climate action massively.
The new German government should play its part in global health security and preparedness.
Germany and the EU need to develop a strong and proactive agenda to manage foreign economic relations, which are essential for German and European prosperity.
The notion of degrowth to reduce greenhouse gas emissions appears unrealistic; decoupling of emissions from growth is in principle possible but requires unprecedented efforts.
Increasing green public investment while consolidating deficits will be a central challenge of this decade. A green fiscal pact would address this tension, but difficult trade-offs remain.
The technical and political conditions are ideal for the creation of a climate club to catalyse tougher climate action worldwide.