In times of growing geopolitical insecurity, inequality, intensified economic global competition and an escalating climate crisis, it is high time for long-term investment in Europe. The European fiscal rules do not set the appropriate incentives to respond to these challenges. The stability of our common currency and the solidarity between member states requires a credible fiscal framework to ensure all member states mainstream sustainability in their finances and their ability to face the urgent expenditures needed in the challenging times today.
Long-term sustainable investment is not only a national issue but a shared European
imperative that requires coordinated action across all member states, as well as at the Union’s level. Further, long-term sustainable investment is a necessary component of fiscal credibility. Rigid fiscal rules are not restricted to EU borders – non-member states are also subject to domestic financial restraints harming sustainable investment. We therefore also call upon these governments to reform their rigid rules, in order to step up green and social investment.
From this perspective, and thanks to the efforts of the German Greens, Germany has now crucially placed urgency in climate mitigation and adaptation, and the required infrastructure expenditure, in addition to the need for public investment in defence. At least €100 billion of additional investment spending for the climate are now on their way. But efforts by individual member states cannot stand alone: Europe must ensure that all countries are encouraged and enabled to make similar commitments.
Yet, it remains uncertain whether this investment can be reconciled with the current EU fiscal framework. Creative exemptions, special deals for individual member states, and complex interpretation guidelines risk reintroducing uncertainty about which rules apply to whom.
That is why EGP leaders demand a new reform of the EU’s fiscal framework. Such a reform must give all member states strong and consistent incentives for long-term sustainable investments. Limited national escape clauses, slightly longer adjustment periods, or special treatment of individual member states are insufficient.
For the urgently needed investments in a climate-neutral economy, the next EU financial framework must focus more on innovation and Europe’s future viability. These should be guided by sustainability principles and aligned with the broader goals of a just transition. Future-oriented policies supporting Europe’s competitiveness, leadership in research, European public goods and cultural diversity must be financially reinforced.
This also requires stronger financial capacity at the European level. We support increasing the EU financial framework, introducing new own resources, and enabling joint borrowing. The MFF should uphold long-term goals while remaining flexible to respond to crises.
Strategic allocation must align with sustainability, democracy, security and solidarity, and foster synergies across areas like the circular economy and a competitiveness fund.
Europe needs clarity, fairness, and long-term investment sustainability – for everyone.
