List of Illustrations

Fig. 1

Gross Fixed Capital Formation (GFCF) of the General Government, % GDP.

Source of data: EC Macroeconomic Database (AMECO), and authors’ calculations.

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Fig. 2

Change in the Composition of Total Expenditures of the General Government Relative to the Average, 2000–07.

Source of data: EC Macroeconomic Database (AMECO), and authors’ calculations.

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Fig. 3

Total Change in GFCF of the General Government and Contributions by Levels of Government, 2009–16, %.

Source of data: Eurostat Government finance statistics and authors’ calculations.

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Fig. 4

Infrastructure Investment in the EU, % GDP (Panel a) and Adequacy of Infrastructure Stock of Transport Infrastructure (Panel b).

Source of data: Eurostat, European PPP Expertise Centre (EPEC), IJ Global, and EIB staff calculations (Panel a); EIB Municipality Survey 2020 (Panel b).

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Fig. 5

Response of Government Investment Following a Fiscal Consolidation, Cumulative pp of GDP.

Source of data: Authors’ calculations.

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Fig. 6

EU Public GFCF, % GDP.

Source of data: EU Member States’ Stability and Convergence Plans (April 2021) and authors’ calculations..

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Fig. 7

EU Capital Transfers, % GDP.

Source of data: EU member states’ Stability and Convergence Plans (April 2021) and authors’ calculations.

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Fig. 8

Actual Climate and Digital-Related Share of Funds.

Source of data: EU member states’ Recovery and Resilience Plans and authors’ calculations.

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Fig. 9

RRF-Funded Capital Spending, % GDP.

Source of data: EU member states’ Stability Plans (April 2021) and authors’ calculations.

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Fig. 10

Change in General Government Debt and Debt Levels in 2019, % GDP.

Source of data: EC Macroeconomic Database (AMECO), and authors’ calculations.

Note: The size of the bubbles reflects the size of the decline of GDP in 2020.

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Fig. 1

General Government Investment Rate (as a % of GDP).

Source of data: Insee. Figure created by the authors.

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Fig. 2

Evolution of General Government Net Wealth as a % of GDP.

Source of data: Insee. Figure created by the authors.

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Fig. 3

Net General Government Investment by Component as a % of GDP.

Source of data: Insee. Figure created by the authors.

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Fig. 4

General Government Investment―Constant Prices, in Billion Euros.

Source of data: Insee and authors’ calculations.

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Fig. 5

Impact of the Plan de relance on French GDP and Breakdown by Three Categories of Measures, % of GDP.

Source of data: Draft budget for 2021, French Plan de relance Digest, Stability Programm 2021–27, and OFCE forecasts.

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Fig. 1

Quarterly Real Gross Fixed Capital Formation of the Government Sector (in Billion Euros, Prices from 2015).

Source of data: Destatis, Quarterly National Accounts, seasonally adjusted, 1991 Q1 until 2021 Q1.

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Fig. 2

Annual Real Gross Capital Formation of Government Subsectors (in Billion Euros, Reference Year 2015).

Source of data: Destatis, Annual National Accounts, price adjustment by IMK using weighted deflators for government subsectors. Investment of social security is not presented, as it is negligible.

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Fig. 3

Contribution of Main DARP Sections to Total Expenditure, in %.

Source of data: DARP, p. 10.

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Fig. 1

Programmed Public Investments.

Source of data: OCPI (2021) on NADEF 2019, NADEF 2020, and DEF 2021 data.

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Fig. 2

Capital Expenditure (billion euros at Constant 2015 Prices).

Source of data: CPT (2020).

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Fig. 3

Capital Expenditure (% GDP).

Source of data: CPT (2020).

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Fig. 4

Investments.

Source of data: CPT (2020).

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Fig. 5

Capital Expenditure by Macro Area.

Source of data: CPT (2020).

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Fig. 6

Capital Expenditure for Investments by Macro Area (Net of Financial Items).

Source of data: CPT (2020).

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Fig. 7

Variations in Expenditure in 2017 and 2018 for Investments and Transfers in the Main PA Compartments by Macro Area (Calculations Based on Constant 2015 Prices).

Source of data: CPT (2020).

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Fig. 8

RRF’s Allocation of Resources by Mission.

Source of data: Italian PNRR plan.

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Fig. 1

Gross Fixed Capital Formation: Central Government and Local Government Expenditures as % of GDP, 1995–2020.

Source of data: Eurostat.

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Fig. 2

Gross Fixed Capital Formation: General Government Expenditure in Poland and the European Union (27 Member States) as % of GDP, 1995–2020.

Source of data: Eurostat.

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Fig. 3

Gross Fixed Capital Formation in Poland and the European Union as % of GDP, 2009–2020.

Source of data: Eurostat.

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Fig. 1

Public Investment.

Source of data: AMECO database. Figure created by the authors.

Note: Public investment is given in 2015 € bn. The ratio P/T is measured (in pp) on the right-hand axis.

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Fig. 2

Public Investment: Growth Rate (%).

Source of data: AMECO database. Figure created by the authors.

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Fig. 3

Public Investment Effort: Public Investment over GDP (%).

Source of data: AMECO database. Figure created by the authors.

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Fig. 4

Distribution of Public Investment by Government Level (%).

Source of data: EUROSTAT database, along with an extension for the year 2020 based on IGAE data (IGAE stands for ‘Intervención General de la Administración del Estado’). Figure created by the authors.

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Fig. 5

Investment Recovery: Gross Public Investment (% GDP).

Source of data: Valencian Institute of Economic Research (IVIE) dataset and AMECO dataset. The figure is an adaptation created by authors of the original published in Spanish Government Agenda 2030 (2021).

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Fig. 6

Macroeconomic Impact (GDP Forecast 2015 = 100).

Source of data: National Statistical Institute of Spain, Ministry of Economic Affairs and Digital Transformation. The figure was taken from Spanish Government Agenda 2030 (2021).

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Fig. 1

Reported Fiscal Multipliers.

Source of data: Gechert and Rannenberg (2018).

Note: n denotes the number of papers.

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Fig. 2

Uncertainty and Crowding-In Effects: Public Investment on Private Investment.

Source of data: Gbohoui (forthcoming, IMF Working Paper).

Note: Macroeconomic uncertainty is measured by the standard deviation of GDP growth rate forecasts across professional forecasters as published by Consensus Economics, using the spring vintage for each year. Investment shocks are identified as forecast errors of public investment spending relative to GDP. t=1 is the year of the shock; non-linear (linear) estimates are plotted in red (black); dashed lines denote 90% confidence bands. The effects represent the response, in percentage change, to an unexpected increase of public investment by 1% of GDP.

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Fig. 3

Effect of Public Investment on Private Firms’ Net Investment (in Percentage Change of an Increase of Public Investment by 1%)

Source of data: Espinoza, Gamboa-Arbelaez, and Sy (2020).

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Fig. 4

ESI Funds Modelled Expenditures.

Source of data: Annual EU budget payments (EUR) made by programme period, available athttps://cohesiondata.ec.europa.eu/Other/Historic-EU-payments-regionalised-and-modelled/tc55-7ysv.

.

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Fig. 5

Historical ESI Funds Payments as a % of Planned Amounts.

Source of data: Author’s calculations.

Note: Absorption rates for the 2007–13 MFF are from the Commission’s “SF 2007–2013 Funds Absorption Rate” dataset available at https://cohesiondata.ec.europa.eu/2007-2013-Finances/SF-2007-2013-Funds-Absorption-Rate/kk86-ceun/data; the 2014–20 data is based on the Commission’s “Regional Policy 2014–2020 EU Payment Details by EU Countries” dataset available at https://cohesiondata.ec.europa.eu/2014-2020-Finances/Regional-Policy-2014-2020-EU-Payment-Details-by-EU/vs2b-dct3/data.

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Fig. 6

ESI Funds Multipliers in EU.

Source of data: Durand and Espinoza (2021), and author’s calculations.

Note: EU-GDP refers to the EU-wide impact of a 1% increase in ESI Funds disbursements on GDP. Similar interpretations apply for the case of total investment (I) and private investment (pI). The coefficients are subject to uncertainty, as illustrated by the bars surrounding the point estimates.

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Fig. 7

Total Investment ESI Funds Multipliers in EU across Economic Sectors.

Source of data: Durand and Espinoza (2021), and author’s calculations.

Note: The figure shows the EU-wide impact of a 1% GDP increase in ESI Funds disbursements on total investment across economic sectors (based on the NACE Rev. 2 classification); as an example, the figure suggests that a 1% GDP increase in ESI Funds contemporaneously increases investment in Water Supply by approximately 0.2% of GDP, after one year. The figure only includes the list of economic sectors which contain statistically significant multipliers. The sectors are ordered from left to right based on the degree of labour intensity (defined as sectoral employment/sectoral Gross Value Added). The coefficients are subject to uncertainty, as illustrated by the bars surrounding the point estimates.

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Fig. 1

Investment in Healthcare Capital as a Share of Current Health Expenditure, 2017 (or Nearest Year).

Source of data: OECD 2021, Health at a Glance.

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Fig. 2

Trends in Healthcare Capital Expenditure.

Source of data: OECD Health Statistics 2019, OECD National Accounts.

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Fig. 3

Public Investment in Healthcare R&D.

Source of data: OECD, Government Budget Allocations for R&D, https://stats.oecd.org/Index.aspx?DataSetCode=GBARD_NABS2007.

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Fig. 4

Share of Preventive Care in Total Healthcare Expenditure, 2018.

Source of data: Eurostat, https://ec.europa.eu/eurostat/databrowser/view/ HLTH_SHA11_HC__custom_423640/bookmark/table?lang=en&bookmarkId=5a8bfe63-5f2d-475c-b221-d7480f54fba3.

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Fig. 1

% GDP Investment in Education in EU-28 (2009 vs 2018).

Source of data: Lifelong Learning platform 2021, Europe’s share of GDP for education and training has never been this low. A comparative analysis, 23rd March 2020.

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Fig. 1

Adoption of Digital Technologies (% of Firms).

Source of data: EIB Investment Survey (EIBIS wave 2019 and 2020).

Note: A firm is identified digital if at least one advanced digital technology was implemented in parts of the business. Firms are weighted using value added.

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Fig. 2

Adoption of Different Digital Technologies (% of Firms).

Source of data: EIB Investment Survey (EIBIS wave 2020). Note: A firm is identified digital if at least one advanced digital technology was implemented in parts of the business. Firms are weighted using value added.

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Fig. 3

Uncertainty as a Major Obstacle to Investment (% of Firms).

Source of data: EIB Investment Survey (EIBIS waves 2019 and 2020).

Note: Firms are weighted using value added.

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Fig. 4

Firms Reporting that COVID-19 Will Lead to an Increased Use of Digital Technologies (% of Firms).

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: A firm is identified digital if at least one advanced digital technology was implemented in parts of the business. Firms are weighted using value added.

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Fig. 5

Corporate Digital Divide Profiles

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Fig. 6

Corporate Digital Divide Profiles (% of Firms).

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Firms are weighted using value added.

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Fig. 7

Corporate Digital Divide Profiles (% of Firms), by Firm Size.

Source of data: EIB Investment Survey (EIBIS wave a2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Micro firms: 1 to 9 employees, small firms: 10 to 49 employees, medium-sized firms: 50 to 249 employees, large firms: 250+ employees. Firms are weighted using value added.

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Fig. 8

Corporate Digital Divide Profiles (% of Firms), by Age.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Young: less than ten years. Old: ten+ years. Firms are weighted using value added.

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Fig. 9

Share of Firms with Positive Employment Growth over the Past Three Years (% of Firms), by Corporate Digital Divide Profiles.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Firms are weighted using value added.

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Fig. 10

Log Average Wage per Employee (in EUR), by Corporate Digital Divide Profiles.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Firms are weighted using value added.

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Fig. 11

Firms Investing in Training of Employees (% of Firms), by Corporate Digital Divide Profiles.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Firms are weighted using value added.

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Fig. 12

Active Innovators (% of Firms), by Corporate Digital Divide Profiles.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Active innovators are firms that invest in R&D and invest to develop or introduce new products, processes or services. Firms are weighted using value added.

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Fig. 13

Major Obstacle to Investment (% of EU Firms), by Corporate Digital Divide Profiles.

Source of data: EIB Investment Survey (EIBIS wave 2020).

Note: See Fig. 5 of the definition of the corporate digital divide profiles. Firms are weighted using value added.

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Fig. 14

Download Speed Faster than 1/Gbs (% of Households) and Digital Infrastructure as an Obstacle to Investment (% of Firms), by Country.

Source of data: EIBIS (2020) and Eurostat.

Note: Firms in EIBIS are weighted using value added.

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Fig. 1

New Asset Finance in Wind Energy 2011–20 (GW and € bn).

Source of data: Wind Europe (2021).

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Fig. 1

European Silk Road Routes including the Proposed Trainline from Lyon to Moscow Source of data: Holzner et al. (2018).

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Fig. 2

Construction Emission Models.

Source of data: Bueno et al. (2017).

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Fig. 3

Model Estimates of Net Negative Emissions

Source: own calculations (2021).

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Fig.4

Construction Emissions by Model

Source: own calculations (2021).

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Fig. 1

Regions Receiving the Largest Contributions from Cohesion Policy (2007–20).

Source of data: https://cohesiondata.ec.europa.eu/EU-Level/Historic-EU-payments-by-MS-NUTS-2-region-filter-by/2qa4-zm5t.

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