At the occasion of the Tripartite Social Summit, Hans-Joachim Reck, CEEP President, presented his recommendations to bring growth back in Europe, by “reinventing the path towards sustainable growth”.
Public services are the backbone of the European economic model. Therefore, investments should be directed towards enterprises, education and infrastructures, which are the foundations for future prosperity, technical progress and jobs. “Along with those investments, Member States have to create a business environment that encourages enterprises to invest”, M. Reck appeals.
Public and private investments need to complement each others
First and foremost, CEEP asks for a change of paradigm. Public and private investments need to complement each other: public investments in infrastructures or networks improve the efficiency and allocation of private investment for specific firms, sectors, or projects. This snowball effect has been studied: according to the International Monetary Fund, an increase in public investment of 1% GDP boosted the economy by 0,4% in the same year, and by more than 1,5% four years later.
A special focus on energy
Investments in energy networks are particularly key for Europe’s overall goal of a secure, competitive and sustainable energy system. “The consequences of the Ukrainian crisis showed that there is a real need for the internal energy market. Therefore, we support the recent call of the European Commission for more engagement in energy infrastructure”, he concluded, illustrating the need for investments in such key enabling sector.
You can consult the full speech here.