The European Union is under pressure to increase strategic public investment amid high debt and limited fiscal space. Public investment accounts for about 17 % of total investment and 3.8 % of GDP, with a projected rise to 4 % by 2027. Transport infrastructure, the largest component, shows only 50‑65 % technical efficiency according to data envelopment analysis, and similar low scores for rail and motorway projects using stochastic frontier analysis. Closing the efficiency gap could free €46‑50 billion per year, but savings would be realized gradually and depend on better project management and governance. The report calls for country‑specific reforms and spending reviews to improve efficiency and support long‑term fiscal sustainability.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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