Dear ladies and gentlemen, We hereby invite you to Guntram Wolff's special lecture "Climate and macroeconomics - What could a green fiscal pact for Europe look like?". LIVE on 2 June, 5:00 pm, at the Vienna Institute for International Economic Studies, Rahlgasse 3, 1060 Vienna, Seminar Room. Please find below your personal invitation with all the details. Since the number of seats is limited, please register here <https://wiiw.ac.at/lecture-by-guntram-wolff-climate-and-macroeconomics-er-575.html>. If you would like to join our exclusive cocktail reception at the Vienna City Hall afterwards, please register here <https://wiiw.ac.at/50th-anniversary-cocktail-reception-er-573.html>. Yours sincerely, Andreas Knapp REMINDER | Lecture by Guntram Wolff (Bruegel): Climate and Macroeconomics | 2 June 2022, 5:00 pm View this email in your browser We cordially invite you to the following event: Lecture by Guntram Wolff: Climate and Macroeconomics *with Guntram Wolff, Director of Bruegel, Brussels * *Thursday, 2 June 2022, 5:00 pm (CEST) * *Venue:* wiiw, Rahlgasse 3, 1060 Wien Seminar Room, Souterrain As the number of guests is limited, please register here <https://wiiw.ac.at/lecture-by-guntram-wolff-climate-and-macroeconomics-er-575.html>. Registerbutton <https://wiiw.ac.at/lecture-by-guntram-wolff-climate-and-macroeconomics-er-575.html> *Guest Speaker: Guntram B. Wolff* <https://wiiw.ac.at/files/events/images/575-776.jpg> Director of Bruegel since June 2013, Guntram Wolff is a recognized thought leader and academic. He regularly testifies at the European Finance Ministers' ECOFIN meeting, the European Parliament, the German Parliament (Bundestag) and the French Parliament (Assemblée Nationale). From 2012-16, he was a member of the French prime minister's Conseil d'Analyse Economique. In 2018, then IMF managing director Christine Lagarde appointed him to the external advisory group on surveillance to review the Fund’s priorities. In 2021, he was appointed to the G20 high level independent panel on pandemic prevention, preparedness and response. He is also a professor (part-time) at the Solvay Brussels School of Université Libre de Bruxelles, where he teaches economics of European integration. *Climate and Macroeconomics* Economic growth has historically been the main driver of rising greenhouse gas (GHG) emissions. To achieve steep emission reductions, the world would have to either decouple global GHG emissions from gross domestic product (GDP) at an unprecedented pace or face deep cuts to GDP. The lecture will review the literature on both degrowth and green growth and discuss their most important arguments and proposals. It will then discuss the outlines of a ‘green fiscal pact’ in the European context. The additional public investment need required to meet the European Union’s climate goals is between 0.5 percent and 1 percent of GDP annually during this decade. Increasing green public investment while consolidating deficits will be a major challenge. While simulations show that budget consolidation can be done at a moderate pace in line with EU rules if those rules are interpreted flexibly, past consolidation episodes resulted in major public investment cuts. This time, there is a need for a major increase in investment. A ‘green golden rule’ (excluding net green investment from the fiscal indicators used to measure fiscal rule compliance) is the most promising option to address this tension. Relaxing the strictness of the EU fiscal framework beyond its existing flexibility and the proposed green golden rule does not appear necessary in the next few years. The uncertain growth impact of green public spending and the risks to growth from climate change create difficult trade-offs in fiscally weaker countries. In any case, better regulatory policy and a higher price on emissions should incentivise private green investment and reduce public costs. These ingredients should be combined to form a ‘green fiscal pact’. We are very much looking forward to seeing you there! Yours sincerely, Dr. Mario Holzner Executive Director wiiw Dr. Robert Stehrer Scientific Director wiiw wiiw The Vienna Institute for International Economic Studies Rahlgasse 3, 1060 Vienna, Austria wiiw@wiiw.ac.at, wiiw.ac.at <https://wiiw.ac.at> T:+43 1 533 66 10 <tel:+4315336610> <https://www.facebook.com/wiiw.economic.studies> <https://www.twitter.com/wiiw_ac_at> <https://www.linkedin.com/company/vienna-institute-for-international-economic-studies> <https://www.youtube.com/c/wiiwacat> <https://wiiw.ac.at/rss.php> Copyright ©2022 wiiw, all rights reserved.

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-- Mag. Andreas Knapp Communications Manager Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw) The Vienna Institute for International Economic Studies Rahlgasse 3, 1060 Vienna M: + 43 680 13 42785 T: +43 1 533 66 10 - 13 F: +43 1 533 66 10 - 50 knapp@wiiw.ac.at Twitter: @_A_Knapp www.wiiw.ac.at