Intereconomics | 2026
Authors: Janse K.A.; Beetsma R.
DOI: 10.2478/ie-2026-0004
Journal: Intereconomics
Year: 2026
Publisher: Sciendo
Document Type: Article
Open Access: All Open Access; Gold Open Access; Green Open Access
Cited by: 0
An enlarged EU budget is needed with own resources to finance European public goods and create a savings and investment union. This article argues that Europe’s weak productivity, strategic vulnerabilities and fragmented capital markets call for a coherent EU-level investment strategy. European public goods generate cross-border spillovers and long-term benefits that justify common financing and debt issuance. Expanding European safe assets would improve market stability and liquidity and help build a fully fledged savings and investment union. Although political resistance persists, shifting national positions indicate growing momentum. The article also highlights the importance of pension funding and institutional investors in supplying long-term risk-bearing capital to boost growth and competitiveness. © The Author(s) 2026.