Assessing the Impact of EU Digital Interventions (2021-2027): A Dynamic Spatial General Equilibrium Approach
JRC Working Papers on Territorial Modelling and Analysis No 10/2025
This paper examines the macroeconomic effects of digital investments in the European Union during the 2021–2027 period. Using a dynamic spatial multi-country and multi-sector general equilibrium framework calibrated for all EU Member States, we analyse how different forms of digital interventions, such as public infrastructure investment, firm-level digitalisation, and skills development, affect the macroeconomy of EU27. The analysis draws on a novel dataset that covers approximately €175 billion of planned investments financed through five major EU programmes. Results show that digital investments have a positive and lasting impact on output, employment, as well as on capital accumulation and household consumption across the Union, revealing an interesting price-competitiveness channel for net exports. The inclusion of cross-border digital spillovers further amplifies these effects, suggesting that improvements in digital connectivity and infrastructure generate benefits beyond national economies.
CASAS Pablo;
CHRISTOU Tryfonas;
GARCIA RODRIGUEZ Abian;
LAZAROU Nicholas Joseph;
LOPEZ COBO Montserrat;
SALOTTI Simone;
SIGNORELLI Serena;
TORRECILLAS JODAR Juan;
TORRECILLA SALINAS Carlos;
2025-11-26
European Commission
JRC144359
https://publications.jrc.ec.europa.eu/repository/handle/JRC144359,
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