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Why Governments should invest

At CEPR’s June 2022 Paris Symposium, Agnès Bénassy-Quéré explained how, since their introduction in the 1990s, euro area fiscal rules remain inadequate: they are difficult to understand as well as not friendly to investments. In fact, public investments in the euro area have seen a reduction compared to the debt crisis of 1990s. Bénassy-Quéré calls on governments to invest more in climate adaptation and mitigation, since fiscal sustainability can be greatly hindered by the absence of climate sustainability.