INCREASING PUBLIC-INVESTMENT IN EUROPE - SOME PRACTICAL CONSIDERATIONS

The study emphasises the joint importance of investment and efficiency of investment (indicated by its rate of return) for economic growth. In particular the role of public investment is analysed. It is shown t hat the differing quality of investment has played a significant role in the different economic growth experiences of the EU,Japan and the U S. It is argued that to increase growth in the EU it may not be necess ary to increase the investment rate. Long-term growth could also be re stored by a sufficiently strong increase of the efficiency of investme nt.