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January 29, 2026Comparative Economic Studies

The EU Fiscal Rules’ Expenditure Benchmark and Investment’s Share of Government Spending

David Cronin Niall McInerney

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Key Points

Government spending on investment is influenced by the EU's fiscal rules, particularly the expenditure benchmark.
The EU fiscal framework sets limitations that can restrict public investment, impacting economic growth.
Observational analysis of government expenditure over the past decade reveals trends in investment shares and fiscal policies.
This analysis highlights the need for revisions to fiscal rules to better accommodate public investment for growth.

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Implication

Analysis of fiscal rules impacting government spending on investment, indicating future budgetary implications.

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Cite This Study

Cronin et al. (2026) studied this question.

synapsesocial.com/papers/69a75dd7c6e9836116a281ad https://doi.org/10.1057/s41294-025-00270-4

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