A draft statement from EU finance ministers reveals that the European Union requires up to 800 billion euros annually, or about 5% of its GDP, to remain competitive with major economies like the US and China.

The ministers emphasized that the funding for Europe's green and digital transitions, defense, and research investments should primarily come from private money, with public funds acting as a catalyst to attract this investment.

Public funds are seen as essential for leveraging private capital, particularly in projects that yield positive societal impacts.

The ministers expressed openness to utilizing taxpayer money for public goods that benefit all EU citizens, highlighting the importance of joint financing in effectively delivering these goods.

The draft also identifies cross-border electricity grids as crucial public goods necessary for achieving lower and more stable energy prices, which are vital for attracting businesses and fostering economic growth.

A well-functioning European energy infrastructure is deemed essential for maintaining the EU's competitiveness and alleviating fiscal pressures related to energy subsidies.

Leveraging public funds involves using a small amount of EU money to cover the riskiest parts of investment projects, thereby incentivizing private investors to engage in the safer, more profitable segments.

Ministers acknowledged their limitations in providing such significant funding and advocated for the development of capital markets to facilitate increased private investment.

Despite the current EU budget of approximately 1.2 trillion euros for a seven-year period, several countries, including Germany, oppose further joint borrowing following the COVID-19 crisis.

This statement precedes an upcoming EU summit on competitiveness scheduled for early November 2024 in Budapest, where leaders will discuss investment strategies.