Which focus for the future?

Which focus for the future?

 
We are coming back from a very unusual season’s break under pandemic, which are the main takeaways about the summer of 2020? 

After the difficult first 6 months of the year, it was an important moment to step back and reflect. Policy makers and advisors have all done a huge job to prevent the worst during the pandemic. But what comes next?

 
Indeed, what comes next in Autumn for policy makers in Europe?

I really have three topics on my mind: The first is about sustainable growth. I am worried that we do not think enough about how to boost our economic growth. The crisis will leave deep scars. Many firms sit on a lot of debt and investment will remain subdued because of uncertainty. At the same time, the EU needs to push forward its climate agenda but there is still a lot of uncertainty about what it will look like.

The second topic is about making sure the vast amounts of EU money will be well spent. The EU cannot afford misspending, neither politically nor economically. How can we ensure that spending boosts the growth potential of our economies? It is for example quite depressing how little money is foreseen for new technologies such as AI (LINK blog post). Also I am worried that corruption and misuse will delegitimize the instrument of EU money. A clear focus on good governance is crucial.

 
And the third topic?

There is a need to review the entire EU fiscal framework. The EU has  created a major additional instrument on top of the existing ESM and there are fiscal rules. How to ensure that all these elements fit together?
Guntram Wolff is Director at Bruegel