What the study found
The article argues that European green industrial policy is increasingly shaped by off-balance-sheet financial instruments, which let governments support investment without formally increasing public debt. It also argues that this kind of policy depends on "techno-political coalitions," meaning alliances that combine technical expertise and political influence to work through fiscal and statistical rules.
Why the authors say this matters
The authors conclude that industrial policy is not only about directing public investment, but also about managing liabilities within strict fiscal constraints. The study suggests that this expands the idea of fiscal capacity beyond taxation and spending.
What the researchers tested
The article examines how fiscal constraints influence contemporary industrial policy, with a focus on European efforts to encourage green growth and sustainability. It uses energy performance contracts as a case study, describing them as creative instruments that enable off-balance-sheet financing for building renovations.
What worked and what didn't
The article says these off-balance-sheet policies can broaden the scope of fiscal capacity under strict fiscal rules. It also states that successful design requires intricate technical work and depends on forming techno-political coalitions, but it does not provide comparative evidence about which approaches work better than others.
What to keep in mind
The abstract does not describe detailed findings from the case study beyond its role as an example. It also does not provide limitations, quantitative results, or a comparison across different countries or policy tools.
Key points
- European governments are using off-balance-sheet instruments to support investment without formally increasing public debt.
- The article argues that these policies require techno-political coalitions that combine expertise and political influence.
- Energy performance contracts are presented as a case study of off-balance-sheet financing for building renovations.
- The study suggests fiscal capacity can extend beyond taxation and spending to include liability management.
- The abstract does not report comparative results or detailed limitations.
Disclosure
- Research title:
- EU green industrial policy relies on off-balance-sheet finance
- Authors:
- Vanessa Endrejat
- Institutions:
- European University Institute
- Publication date:
- 2026-02-11
- DOI:
- 10.17645/pag.11419
- OpenAlex record:
- View
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