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Growth and sustainability: regaining lost ground

In: Sovereign Europe

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Abstract

This second chapter offers a thorough description of the impact of the NextGenerationEU (NGEU) recovery plan on the European economy and of the fundamental renewal of the European growth model to be brought about by the Green Deal, digitalization and social inclusion. This is the major challenge facing Europe. A transformation process that must quickly reach a sustainable pace, bearing in mind that the benefits of climate change mitigation, in terms of increased productivity and growth, will only be available in the medium and long term. At the same time, the demographic decline now besetting the majority of European countries requires sharp increases in productivity and growth to support the economy. The chapter describes briefly the mechanisms and transmission channels through which NGEU delivers long-term productivity accelerations.

Suggested Citation

  • ., 2024. "Growth and sustainability: regaining lost ground," Chapters, in: Sovereign Europe, chapter 2, pages 27-46, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:23676_2
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035341245.00006
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