The future European Competitiveness Fund should match the US IRA in terms of percentage of GDP (1.38%), according to a study carried out by the Green Economy Institute and Cambridge Econometrics. This amounts to €237 billion over seven years, according to the authors of the document. They suggest that the European co-legislators should set up a fund starting in 2027 to succeed the recovery plan, which ends in 2026.
Rather than increasing the EU budget, the authors of the report recommend a new recourse to the common debt, with repayment from 2034.
With regard to the distribution of these potential resources, priority should be given to those Member States facing the greatest challenges in their transition. Demographic, GDP and unemployment rate criteria would then be added to the calculation. The two organisations give a glimpse of what the distribution could look like: 18% for Italy, 14% for Spain, 13% for Poland and 12% for Germany.
See the report: https://aeur.eu/f/f39 (Original version in French by Léa Marchal)