Europe Is Falling Behind on Infrastructure Spending

May 22, 2019

Europe Is Falling Behind on Infrastructure Spending
PIIE/William Melancon

President Trump and Democratic congressional leaders have agreed to produce a $2 trillion US infrastructure plan, fulfilling a Trump campaign promise at least on paper. But the United States is not the only place in dire need of repairs to its roads, bridges, and other infrastructure. This chart shows how euro area governments have been running down their public infrastructure since 2010 by failing to invest enough to make up for wear and tear and sales of assets (buildings, roads, bridges, etc.) to private individuals, funds, or businesses. Euro area corporations and households meanwhile show consistently positive and in recent years rising net investment levels.

This PIIE Chart is adapted from research for an upcoming PIIE Policy Brief on European fiscal policy.