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

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.