Policy paper: Getting a grip on the climate challenge to build the future of Europe

Based on the observation of deceleration since the financial crisis and persistent divergence between the countries of the European Union, this paper firstly highlights the challenges that lie before Europe’s economy. Amongst these the climate features as a central issue. The economic tools at Europe’s disposal are then assessed, of which the Investment Plan, a promising tool, and action undertaken vis-à-vis the climate. Finally, the paths that might be taken towards climate transition are laid out to provide a response to the threat of secular stagnation and division on the continent. Proposals are made for the Investment Plan for it to become a privileged vector of this strategy. Apart from the establishment of a framework to redirect financial flows towards green investments, the establishment of a climate transition authority and a steering committee might provide the Plan with the industrial strategy it is lacking. This might be implemented to a widened base and become a key factor in the European response to Eurosceptic movements.