The EU's taxonomy for sustainable activities - a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate - is an effective way to steer greener investment and the energy transition by firms and financial institutions.
Details on the taxonomy are here:
https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en
Use of the EU taxonomy for sustainable activities is likely to stifle important innovations, including in green technology.
On balance, use of the taxonomy in EU directives and regulation is likely to be net beneficial to European citizens.
Fiscal rules on budget deficits and public debt levels are an essential part of a sound fiscal framework.
Since the inception of the Stability and Growth Pact, budget deficits in Europe have been measurably lower, on average, than would have been the case without common budget rules.
Since the inception of the Stability and Growth Pact, the path of GDP growth in Europe has been measurably more stable than would have been the case without common budget rules.
