The European Growth and Jobs Monitor: Interim Update, Autumn 2007

In addition to our annual European Growth and Jobs Monitor, which measures the progress made with respect to the Lisbon Process, we plan, from now on, to highlight what we believe to be particularly promising growth drivers in another annual feature. This time, the growth driver in question is infrastructure investment.

The EU has made further progress towards achieving the Lisbon targets, particularly with respect to improved labour productivity. Whether this signals the beginning of a higher productivity growth path in the longer term remains unclear.

There is a clear connection between infrastructure, or public investment, on the one hand and economic growth on the other. Bottlenecks caused by congestion and agglomeration (“congestion costs”) are calls for action to policymakers.

Globalisation, public-sector financing woes and efficiency considerations support the use of public-private partnerships for the implementation and running of infrastructure projects.

Education spending shares many characteristics with infrastructure investment, and should, in the main, be not only viewed as such, but also – to ensure that targeted political decisions are made – also recorded as such in terms of statistics to a greater extent than hitherto.

 

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