Details
- Identification
- Economic Brief 084
- Publication date
- 5 June 2025
- Authors
- Lukas Vogel | Directorate-General for Economic and Financial Affairs
Description
The joint implementation of structural reforms and investments has gained traction in policy initiatives and recommendations, including those aimed at supporting productivity growth and the competitiveness of the European economy. This Economic Brief collects arguments, grounded in economic theory and empirical evidence, supportive of an approach of investment-reform complementarity.
Highlights
This Economic Brief collects arguments supportive of investment-reform complementarity, namely:
- Reforms can improve the efficiency of public investment spending by improving the government’s administrative capacity.
- Reforms and investments may be important components of structural transformations that require modernisation of the production structure and a modification of incentives.
- Reforms can help crowding in private investment.
- Jointly implementing reforms and investments may improve macroeconomic stability.
- Investment (funding) can act as material incentive facilitating the implementation of politically costly structural reforms.
Information and identifiers
Economic Brief 084. June 2025. Brussels. PDF 22 pp. Tab. Graph. Bibliogr. Free.
KC-01-25-036-EN-N (online)
ISBN 978-92-68-12540-3 (online)
ISSN 2443-8030 (online)
doi:10.2765/29744 (online)
JEL classification: D20, E22, H50.
Disclaimer
European Economy Economic Briefs are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.
