However, economic uncertainty remains exceptionally high because of the extreme and unpredictable nature of some risks, especially those linked to the war. 7. The surge in inflation, which has reached levels unmatched for decades in the advanced economies, is of grave concern.
Moreover, the coordinated focus on green investment and digitalisation has the potential to generate additional productivity gains on a cross-European basis in view of the shared benefits of an orderly carbon transition and the positive network externalities from enhanced digital capacity across all Member States. Of course, fiscal support for basic research and development activities also serves as an international public good.