The green transition of the European Union requires “unprecedented investment” and overall additional investments of around €620 billion per year will be needed to meet the targets of the green deal and our REPowerEU plan, with a further €92 billion needed to meet the targets of the Net-Zero Industry Act over the period 2023- 2030 period. This was communicated by the EU Commission by presenting the strategic foresight report 2023in which he analyzes the ways to place “sustainability and the well-being of the person at the heart of Europe’s open strategic autonomy” and proposes concrete interventions to this end.
By far the most of these investments will have to come from private funding, says the document. Member states’ budgets will also play an important role: the EU is already ready to spend €578 billion, at least 30% of its budget, on climate-relevant actions for the period 2021-2027.
But there is not only the green transition, with the Commission explaining how other strategic investments are also growing. Closing the EU investment gap for the digital transition it will cost at least 125 billion euros a year, for example. Even the price of the new geopolitics will be high: for example, in 2021 Member States’ defense spending increased significantly to €214 billion, with an additional €75 billion planned until 2025 to build adequate defense capabilities. Finally, the reconstruction of Ukraine it will require all partners €384 billion over the next 10 years.
The report indicates ten areas where a political response is needed of the EU so that the transition towards sustainability remains focused on the well-being of the person and society: (1) New European social contract, with renewed social protection policies and a particular focus on the availability of high-quality social services. (2) Deepening the single market to promote a resilient net-zero economy, with a focus on open strategic autonomy and economic security. (3) Increased EU offer on the global stage to enhance cooperation with key partners. (4) Support for the evolution of production and consumption towards sustainability, directing the regulation and promoting balanced lifestyles. (5) Evolution in a “Europe of investments” through public interventions to incentivize financial flows towards transitions.
And again: (6) Adjustment of public budgets to sustainability thanks to the efficiency of taxation and public spending. (7) Further displacement of political and economic indicators towards sustainable and inclusive well-being, also by adjusting the GDP relative to various factors. (8) Possibility for all Europeans to contribute to the transition through increased participation in the labor market and an emphasis on future skills. (9) Strengthening democracy by focusing policymaking on generational equity so as to strengthen support for transitions. (10) Integrating civil protection with “civil prevention” through the enhancement of the EU’s preparedness and response toolbox.
“The intention is to keep Europe at the forefront of the transition towards sustainability, leveraging our unique model of the social market economy and our commercial power in the world – commented Maros Sefcovic, Vice-President for Interinstitutional Relations and the strategic perspectives -. We will thus help Europe strengthen its leadership in the world and concrete our ability to stand on its own feet while forging strong partnerships with others – i.e. the open strategic autonomy of Europe“. (Ticker)