New research shows that many investments, in particular in education and infrastructure, pay for themselves at much higher real interest rates than the ones currently prevailing. [21]  The responsible use of the Recovery and Resilience Facility is crucial in that respect. It provides sizeable funds to promote investment in future technologies.
But EU funds should not be taken as an excuse to reduce the investment component of national budgets. Public investment and structural policies hold the key to a higher sustainable growth path and higher interest rates. Monetary policy must take the equilibrium interest rate largely as given. Fiscal policy can help raise it.