To achieve the green transition, the Stability and Growth Pact (SGP) needs to be redesigned to incentivise Member States to invest. The current reform proposal on the table, however, falls short of the EU’s ambition to achieve the green transition. To address this shortcoming, seven organisations including EUREC have signed an Open Letter which calls for targeted modifications of the SGP to increase green public investment.
This letter proposes several amendments of the current reform proposal:
1. Tilt the extension clause for fiscal-structural plans towards green investment and away from brown investment. This includes a minimum share for green investments and reforms contained in fiscal structural plans benefitting from an extension, compliance with the DNSH principle for all reforms and investments included in fiscal-structural plans that form the basis of an extension, and the requirement to reduce climate-harming subsidies over the course of a fiscal-structural plan.
2. The removal of the ‘one size fits none’ numerical benchmarks to improve the design of the SGP and allow Member States to use all available fiscal space to achieve the green transition in line with debt sustainability.
3. Serious consideration for preferential treatment to national green investment which is co-financed through EU funds.
The inclusion of these amendments in the SGP reform would be a decisive improvement to help the EU achieve its climate objectives.
This letter was signed by the following 7 organisations working the fields of cleantech, energy and climate policy: Airborne Wind Europe, Cleantech for Europe, Climate Strategy & Partners, the Association of European Renewable Energy Research Centres (EUREC), the Jacques Delors Energy Centre, Tech for Net Zero, Transport & Environment.
Download the letter in full below.