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By Bruno COLMANT, Ph.D., Member of the Royal Academy of Belgium
The financial challenges looming on Europe’s horizon are colossal. Implementing the Draghi report, environmental remediation, adapting to climate disruptions, and urgent military investments require trillions of euros. Due to their scale and long-term nature, these projects far exceed the capabilities and expectations of private capital, which often focuses on quick, short-term returns. Relying solely on the private sector to fund these initiatives would be unrealistic, as they align with a long-term vision often incompatible with immediate profitability demands.
In this context, public debt emerges as the primary financing option. However, this solution faces a major constraint:...
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