Sustainable Fiscal Policy – How Can the State Support Sustainable Growth?

The new era has now also arrived in fiscal policy. Financial leeway at all levels of government is becoming narrower, while the economic outlook is becoming gloomier. In addition, climate protection and sustainability are playing an increasingly important role. Sustainable fiscal policy must secure the government's ability to act over the long term. At the same time, however, a change in thinking is also required. For a long time, the path toward ecological investments went primarily via incentives for self-restraint or via subsidies. Now, market mechanisms such as the CO₂ price are gradually gaining in importance.

• Is this enough to achieve the green transformation?
• Should government investments, similar to the private sector, be even more subject to sustainability criteria?
• Can the government invest in green innovations if it establishes the appropriate framework conditions?

Danyal Bayaz, Minister of Finance of Baden-Württemberg, has discussed these questions and others in his presentation "Sustainable Fiscal Policy – How Can the State Support Sustainable Growth?"