Cuts in Public Investment Could Harm Long-Term Economic Growth and Budgets
Public investment in the European Union can impact economic performance and budget consolidation efforts. Cutting public investment may harm long-term growth and future budgets. The study analyzed various countries in the Euro zone to see how public investment affects output, employment, and private investment. The findings suggest that reducing public investment could be counterproductive in the long run, as it may hurt economic performance without improving the budget situation.