Infrastructure in the EU: Developments and Impact on Growth
- ISBN-10
- 9279388185
- ISBN-13
- 9789279388187
- Category
- Infrastructure (Economics)
- Pages
- 105
- Language
- English
- Published
- 2014
Description
The economic and financial crisis resulted in a sharp decrease in both private and public investment in the EU. Stimulus efforts were put in place right at the beginning of the crisis in 2008, which resulted in support for infrastructure investment worth about EUR 32 billion (0.25 % of EU GDP), over 2009 and 2010, but these measures subsequently stalled as the crisis wore on and governments decreased investment as part of their efforts to strengthen public finances. Today, investment needs are high in areas such as research, innovation and ICT which are important drivers of growth and competitiveness. However, there are also arguments to suggest that Europe should invest in energy and transport infrastructure. Energy and transport infrastructure play a vital role in the integration and efficiency of the EU's internal market. Moreover, they are central to the EU's strategic transformation towards a low-carbon economy over the medium-long run. Investment in cross-border energy infrastructure is also needed to improve the EU's energy security and the functioning of the energy market. The EU's energy and transport infrastructure investment needs are expected to remain high in the near future. This report analyses the macroeconomic impact of infrastructure development in the EU, focusing on inland transport and energy. It also assesses infrastructure investment patterns in Member States, before and after the economic crisis.
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