A new EU growth model must empower local services, boost resilience and deliver sustainable investments
The war in Ukraine and the aftermath of the COVID-19 crisis have placed Europe at a critical crossroads. These overlapping challenges are testing the strength of our democracies, economies and social fabric and call for a bold rethinking of Europe’s economic governance.
In response, the SGIs Network, bringing together key public service stakeholders, has issued a joint declaration ahead of the Tripartite Social Summit on 23 March 2022. The message is clear: to manage the transition and strengthen the EU’s resilience, Europe must urgently shift towards a more forward-looking, inclusive and investment-oriented growth model.
A new economic framework
The current EU fiscal rules are no longer fit for purpose in the face of permacrisis. The declaration calls for a reformed fiscal architecture that reconciles debt sustainability with long-term, growth-enhancing investments. This includes distinguishing productive investments, such as in green infrastructure, digitalisation, healthcare and education, from unproductive spending.
Empowering local action
Local and regional governments are essential to achieving a green, digital and fair transition. The declaration stresses the need for their full involvement in implementing the National Recovery and Resilience Plans (NRRPs) and accessing the Next Generation EU funds. Without this multilevel approach, the EU risks missing the full potential of its recovery strategy.
From temporary response to permanent capacity
As the NGEU package and current EU budget cycle expire in 2026–2027, the declaration urges leaders to prepare for a longer-term fiscal and investment strategy. A permanent common fiscal capacity will be vital to address future shared challenges, from climate change to geopolitical instability, and avoid deepening inequalities between territories.
The call from the SGIs Network is not just for more funding, but for better governance and greater solidarity. It is a reminder that investing in public services, social cohesion and local resilience is not a cost. It is the foundation of a stronger, united Europe.
For more information, contact:
Advisor – Territorial Cohesion & Local Finances
