I. Three Stylized Facts Public Investment Levels Have Fallen Change - PowerPoint PPT Presentation

I. Three Stylized Facts Public Investment Levels Have Fallen Change in Public Investment since 2009 Public Investment (in percent of GDP) (in percent of GDP) 4.0 0.0 EU 28 -0.2 Constrained Unconstrained 3.5 -0.4 -0.6 3.0 -0.8 -1.0 2.5 -1.2 1990 1995 2000 2005 2010 2015 Unconstrained EU Avg Constrained Source: IMF Public Investment Database. 2

I. Three Stylized Facts Public Investment Spending is not Counter-Cyclical Correlation of the Growth in Public Investment to Economic Slack 3 2 Change in public investment 1 0 -1 -2 -3 -15 -10 -5 0 5 10 15 Output Gap Source: IMF staff estimates. 3

I. Three Stylized Facts Public Investment is not that Efficient Public Investment Efficiency 140 Efficiency Frontier Infrastructure index - Hybrid indicator (Output) 120 100 80 60 40 All Countries 20 EU 0 0 10,000 20,000 30,000 40,000 Public Capital Stock per Capita (Input) Source: IMF staff estimates. 4

II. The EIB’s Role – Boosting Spending EFSI Funding is Growing in Importance EFSI Capital, Approved Projects and Targets (EUR billion) 600 500 400 300 200 100 0 Capital EFSI approved Targetted investment Sources: EC Fact Sheet and EIB 2017/18 Investment Report. 5

II. The EIB’s Role – Counter-cyclical Funding EFSI Funding Going to the Weakest Economies EFSI Approved Funding vs 2016 Output Gap (in percent of GDP) 6.0 5.0 4.0 EFSI Investment Output gap 3.0 2.0 1.0 0.0 -1.0 -2.0 PRT LTU FIN LVA IRL LUX NLD AUT EST ESP BGR ITA GRC SVK BEL GBR SVN FRA DEU POL MLT SWE CRT CYP ROM DNK CZE HUN Sources: EFSI Fact Sheet & IMF WEO. 6

II. The EIB’s Role – Improving Efficiency Weaknesses in Public Investment Management Results of PIMA Assessments Fiscal Rules Monitoring of Assets National & Sectoral Planning Project Management Central-Local Coordination Transparency of Execution Management of PPPs Availability of Funding Company Regulation Protection of Investment Multiyear Budgeting Project Selection Budget Comprehensiveness Project Appraisal Budget Unity Allocating EU Average ADV Average Source: IMF staff estimates. 7