PUBLICATIONS AND DOCUMENTATION

The NGEU (Next Generation EU) marks a transformative change for the EU and can be considered as the new plan for a new Renaissance for Europe. The amount of resources deployed to boost growth, investment and reforms amounts to € 750 billion, of which more than half, € 390 billion, are grants. The strategic directives of the plan are, among others, the twin Green and Digital Transformation which is a key priority for Europe and not only. The new sustainable finance strategy sets out several initiatives to tackle climate change and other environmental challenges while increasing investments — and the inclusion of  SMEs — in the EU’s transition toward a sustainable economy. Tax systems can play a key role in achieving the global goals and inclusive circular economies especially in the case of an European Fiscal Union based on simpler and unified rules but most importantly common goals and strategies. Such a shift in taxation would promote and reward a circular economy with its local low-carbon and low-resource solutions in accordance with the next European taxonomy. To realise this green potential, digital technologies need investment and legislation that encourages them to flourish. Europe therefore needs to step up its digitalisation efforts – such as boosting connectivity and increasing funding for research and development. For this to happen, Europe must look at digital and climate action together, rather than separate policy areas.