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SRSS

Creating conditions for effective public investmentSubnational capacities in a multi-level governance context

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Kaspar Richter SRSS, European Commission

Workshop24 January Brussels

• Important topic: potential benefits of boosting public

investment (demand side, supply side, fiscal risks) rely on

effective management

• Paper identifies subnational capacities and provides approach

for assessing and strengthening such capacities

• Three questions:

• How do OECD, IMF & World Bank frameworks compare?

• How to assess capacities?

• What are recent Commission initiatives for strengthening capacities of Member States?

Contributions of the paper

2

• Common focus on stages of investment cycle

• Some differences:

• IMF: macro-fiscal dimension

• World Bank: independent review; operations

How do OECD, IMF & WB frameworks compare?

3

OECD (2013)

4

IMF (2015)

5

World Bank (2014)

6

• Best practice versus must-haves

• What priorities for large cities, what for rural municipalities?

How to assess capacities?

7

• Three pillars of investment plan, recently evaluated

• 1. Pillar: effective in mobilizing private capital but benefit

mostly to MS with more developed financial markets and

conducive business environment

• 2. Pillar: Hub provides assistance to get projects off the

grounds but local and regional outreach needs to be

improved and MS planning and coordination structures to be

strengthened

• 3. Pillar: EU priority initiatives; MS barriers to investments;

implementation support via SRSS

What are recent EU Commission initiatives on strengthening MS capacities?

8

SRSS

Thanks


SRSS

Annex


Contraction during the crisis, recent stabilisation

Recent Trends in EU28

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Public investment mainly at central and local level


13

Large differences across MS

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