EU faces funding crisis amid ambitious transition goals

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🗞️ Driving the news: The EU faces a funding crisis for its 2024-2029 Strategic Agenda, focusing on green and digital transitions, due to insufficient private capital investment, according to a Finance Watch report

🔭 The context: Adopted on June 27, 2023, the agenda prioritizes a free and democratic Europe, a strong and secure Europe, and a prosperous and competitive Europe
• Concerns arise about financing the digital and green transitions, which rely heavily on both public and private investments

🌍 Why it matters for the planet: Achieving these ambitious green goals is crucial for addressing climate change, yet the current funding gap threatens the EU's ability to make necessary environmental advancements

⏭️ What's next: EU leaders must devise new financial strategies to attract more capital market investments and ensure sustainable funding sources to meet the agenda's objectives

💬 One quote: "With well-targeted regulation and a lot of political will, we think capital markets can fund up to a third of the EU's climate needs," said Thierry Philipponnat, chief economist at Finance Watch

📈 One stat: Addressing climate change alone would require upfront investments amounting to between 5% and 10% of the EU's GDP per year

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