The Great Reset

Floriana Cerniglia

Description

This timely and insightful collection of essays written by economists from a range of academic and policy institutes explores the subject of public investment through two avenues. The first examines public investment trends and needs in Europe, addressing the initiatives taken by European governments to tackle the COVID-19 recession and to rebuild their economies. The second identifies key domains where European public investment is needed to build a more sustainable Europe, from climate change to human capital formation.

Building on the 2020 edition, The Great Reset demonstrates the value of public capital both within European countries and as a European public good, shedding light on the impact that the NextGenerationEU’s Recovery and Resilience Facility will likely have on the macroeconomic structure of the European economy. The first part of the Outlook assesses the state of public investment in Europe at large, as well as focusing on five countries (France, Germany, Italy, Poland and Spain) as case studies. The second part focuses on the challenges posed by the pandemic and the pillars of the NextGenerationEU investment plan, with chapters ranging from education and digitalization, to territorial cohesion and green transition.

This book is a must-read for economists, policymakers, and scholars interested in the impact and recovery of European countries during a time of extensive uncertainty.
 

Sujets

• Public Finance
• Economie gestion
• Government bond
• Climate change
• Economics
• Business
• Europe

Informations

• Publié par: Open Book Publishers
• Date de parution: 26 novembre 2021
• Nombre de lectures: 2
• EAN13: 9781800643536
• Langue: English
• Poids de l'ouvrage: 5 Mo

Extrait

The Great Reset

The Great Reset
2021 European Public Investment Outlook
Edited by Floriana Cerniglia, Francesco Saraceno, and Andrew Watt





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© 2021 Floriana Cerniglia, Francesco Saraceno, and Andrew Watt. Copyright of individual chapters is maintained by the chapters’ authors.




This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International license (CC BY-NC-ND 4.0). This license allows you to share, copy, distribute and transmit the work for non-commercial purposes, providing attribution is made to the authors (but not in any way that suggests that he endorses you or your use of the work). Attribution should include the following information:
Floriana Cerniglia, Francesco Saraceno, and Andrew Watt, The Great Reset: 2021 European Public Investment Outlook. Cambridge, UK: Open Book Publishers, 2021, https://doi.org/10.11647/OBP.0280
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Open Reports Series, vol. 10 | ISSN: 2399-6668 (Print); 2399-6676 (Online)
ISBN Paperback: 9781800643505
ISBN Hardback: 9781800643512
ISBN Digital (PDF): 9781800643529
ISBN Digital ebook (epub): 9781800643536
ISBN Digital ebook (azw3): 9781800643543
ISBN XML: 9781800643550
DOI: 10.11647/OBP.0280
Cover image: Photo by Sander Weeteling on Unsplash, https://unsplash.com/photos/iGDg_f_mlWo
Cover design: Anna Gatti.

Contents
Acknowledgements
xiii
Authors’ Biographies
xv
Preface
xxv
Franco Bassanini, Sebastian Dullien, Alberto Quadrio Curzio and Xavier Ragot
Introduction
1
Floriana Cerniglia, Francesco Saraceno and Andrew Watt
References
13
Part I—Outlook
15
1.
Public Investment in the Pandemic—Europe at a Glance
17
A. Brasili, A. Kolev, D. Revoltella and J. Schanz
Introduction
17
1.1
Government Investment Since the Global Financial Crisis
18
1.2
Rebuilding Better: The Response to the Pandemic and the Outlook for Public Investment
22
1.3
The Implementation of Public Investment Plans Determines Their Success
27
1.4
Will This Time Be Different?
29
1.5
Conclusion
31
References
32
2.
From Fiscal Consolidation to the  Plan de relance : Investment Trends in France
33
Mathieu Plane and Francesco Saraceno
Introduction
33
2.1
Trends in Public Investment before the Pandemic
33
2.2
Public Investment during the Pandemic
38
2.3
The Plan de Relance of September 2020
40
2.4
Conclusion
44
References
46
3.
Public Investment in Germany: Much More Needs to Be Done
47
Katja Rietzler and Andrew Watt
Introduction
47
3.1
Public Construction Investment Softened in the Pandemic, Equipment Massively Increased
47
3.2
Investment Projects under the Stimulus and Future Investment Package: Limited Scope and Slow Progress
50
3.3
German Recovery and Resilience Plan: Substantial Overlap with Stimulus and Future Package
51
3.3.1
Overview of the DARP
52
3.3.2
Climate and Energy
54
3.3.3
Digitalisation of the Economy and Infrastructure, and of Education
56
3.3.4
Social Inclusion
56
3.3.5
Strengthening the Health System and Modernising Public Administration
57
3.3.6
Overall Assessment
58
3.4
Substantially Higher Credit-Financed Public Investment Does Not Threaten Debt Sustainability
58
3.5
What Germany Needs after the COVID-19 Crisis: Reform of Fiscal Rules and Stabilisation of Investment at a High Level
60
References
61
4.
Relaunching Public Investment in Italy
63
Giovanni Barbieri and Floriana Cerniglia
Introduction
63
4.1
Public Investments in Italy
64
4.2
The National Recovery and Resilience Plan: Financial Resources for Public Investment
69
4.3
Conclusion
74
References
76
5.
Public Investment in Poland
79
Adam Czerniak and Sebastian Płóciennik
Introduction
79
5.1
Historical Background
79
5.2
Turning Points
80
5.3
Determinants for Public Investment Increases
82
5.3.1
Investment Needs
82
5.3.2
Macroeconomic and Institutional Environment
84
5.4
The National Recovery Plan
85
5.4.1
General Information
85
5.4.2
Five Components of the National Recovery Plan
87
5.4.3
Macroeconomic Impact of the National Recovery Plan
89
5.5
Conclusion
91
References
92
6.
Trends and Patterns in Public Investment in Spain: An Update
93
José Villaverde and Adolfo Maza
Introduction
93
6.1.
Public Investment in Spain: 2000–20
93
6.2.
Next Generation EU: Some Insights from Spain
98
6.3.
Conclusion
102
References
103
PART II—Challenges
105
7.
Crowding In-Out of Public Investment
107
Luigi Durand, Raphael Espinoza, William Gbohoui, and Mouhamadou Sy
Introduction
107
7.1
Modern Estimations of the Fiscal Multiplier
108
7.2
Conditions under Which Crowding In Is More Likely
109
7.3
Lessons for the European Union
114
7.3.1
Public Investment and EU-Financed Investment in the Post-COVID Recovery
114
7.3.2
The Crowding In Effects of EU Funds
117
7.4
Conclusion
121
References
121
8.
Investing in Health
127
Pierre-Yves Geoffard
Introduction
127
8.1
Health
127
8.1.1
Healthcare and Investment in Healthcare
128
8.1.2
Recent Crises
129
8.2
Relevant Investment in Health and Healthcare
130
8.2.1
Human Capital
130
8.2.2
Digital Transformations
131
8.3
Hospital and Long-Term Care
133
8.4
Industry: Pharmaceuticals
133
8.5
Prevention
135
8.6
Conclusion
137
References
137
9.
Education, Human Capital, and Social Cohesion
139
Lieve Fransen, Romano Prodi, and Edoardo Reviglio
Introduction
139
9.1
Digital Learning: A Boost During the Pandemic but and Increaser of Inequality and Stress on Public Investment
140
9.2
Reforming Education and Lifelong Learning, and Ensuring Adequate Investment
142
9.3
New Models for Financing Social Infrastructure for Education
147
9.4
The Golden Rule for Social Investment, Reforming the Stability and Growth Pact, and Next Generation EU
150
9.5
Conclusion
152
References
153
10.
COVID-19 and the Corporate Digital Divide
157
Désirée Rückert, Reinhilde Veugelers, Antilia Virginie, and Christoph Weiss
Introduction
157
10.1
Ado