A Talk by: Debora Revoltella, Director of the Economics Department of the European Investment Bank
Investment is recovering in Europe, but this recovery is slow and uneven among countries and asset classes. At the EU level, public infrastructure investment is behind long-term trends as fiscal consolidation policies have been penalising gross fixed capital formation versus current expenditures in most countries. The corporate sector is driving the slow recovery of investment but firms are concerned about the quality of their capital stock, following years of underinvestment, which is particularly relevant in the context of the need to adapt to new technological advancements. Understanding the reasons behind this slow recovery in investment is key to defining appropriate intervention policies. In this context, the EIB has launched a unique new initiative, "The Annual EIB Investment Survey," which collects qualitative and quantitative data from 12,500 SMEs and larger non-financial companies in all 28 EU member states. The data covers information on firm characteristics and performance, past investment activities and future plans, sources of finance and the challenges that businesses face.
The discussion on competitiveness and investment challenges in Europe will be accompanied by a broader discussion on opportunity and needs for a policy action in terms of support to investment. The European Investment Bank is a unique institution, owned by the EU member states and in charge of supporting investment addressing market failures. The role and working model of the EIB will be discussed.
Co-sponsored by the Center on Global Economic Governance (CGEG) and the Program in Economic Policy Management (PEPM) at Columbia University.