| Description | A new study commissioned by the European Commission’s Directorate-General for Climate Action (DG CLIMA) concludes that the transition to climate neutrality can be achieved without undermining the long-term sustainability of public finances.
The study examines how the transition towards a climate-neutral economy will affect government revenues, public expenditure and fiscal balances across the European Union. While significant changes in public finances are expected as fossil fuel use declines, the analysis finds that the overall fiscal impacts are likely to remain limited and manageable.
According to the report, climate neutrality is not expected to become a determining factor for government debt sustainability, provided that Member States continue to adapt fiscal and taxation policies throughout the transition. |
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