Documents Revoltella, Debora 4 results

"While monetary policy is close to the limits of what it can achieve, consensus on a more active fiscal policy is still lacking. Indeed, on the political front, Europe stands at something of a political crossroads, facing growing social, economic and political challenges. Efforts are now focused on pragmatically advancing on key common priorities. The urgency and ambition with which this co-operation proceeds will be critical to success.This paper largely relies on the publication European Investment Bank: Investment and Investment Finance in Europe: Financing Productivity Growth, 2016, available at http://www.eib.org/about/economic-research/eib-investment-report.htm."

"Infrastructure is instrumental when it comes to linking local businesses with their global growth opportunities. This paper shows that, by making this link, the transport network can act as a catalyst for regional economic growth. Using a novel approach, we find that firms in regions with a more developed transport infrastructure are better placed to benefit from positive growth opportunities than those in regions with a less well-developed transport network. This advantage is most pronounced in times of economic slack—making a better transport network a key ingredient for economic recovery. It is against this background that the recent slowdown in infrastructure investment in Europe is worrisome. But it is through this channel (among others) that the substantial ramp-up of activity by the European Investment Bank is expected to foster growth and enhance competitiveness in Europe."

"COVID-19 and the related lockdowns have taken their toll on the EU corporate sector. This column uses an accounting approach and ORBIS firm-level data to assess the medium-term strategic choices for firms. Assuming three months of lockdown and under different normalisation scenarios, cumulative net revenue losses of EU companies are estimated in the range of 13-24% of EU GDP. These losses create a difficult trade-off for firms between protecting investments and increasing their leverage. To properly accompany the recovery, policies to ease access to credit should be matched to enhanced instruments for long-term, equity-type financing."