At national level, countries with large current account surpluses should commit to investing more. In addition, all countries should prioritise investment in research and development and key infrastructures within their public spending mix.
At European level, European resources, such as the European budget and the EIB, should be used in particular to leverage private investment. We need a stable and robust banking sector and well-functioning capital markets to provide accessible credit to the real economy.
The second priority is stepping up reforms that unlock growth potential. Without effectively-implemented reforms, we will not have sustainable growth and job creation. It is not about choosing between supply and demand-side measures: both are needed and are complementary. Reforms are also needed to secure the sustainability of our welfare societies and ability to protect the vulnerable. No country is immune from the need to reform, although some have more pressing needs. We should use the existing economic governance framework more effectively to support the adoption of the implementation of structural reforms. Our fiscal rules do not prevent countries from reforming – far from it. There are many examples of countries that have adopted important reforms in parallel with major fiscal adjustment. Nonetheless, there is scope to use our existing economic governance framework more effectively to support countries in their reform efforts.