In this regard, two mechanisms are particularly relevant to the euro area economy; the mobility of factors of production and the flexibility of price and wage setting. Either of these mechanisms would need to react in order to achieve a sustainable adjustment to economic disturbances.
The European Commission estimates that reaching the 2030 climate target requires additional annual private and public investments of approximately 5 hundred billion of euros. This represents around 4 % of last year's GDP at the EU level an amount that could already trigger a new investment momentum in Europe.