Report
In the second half of 2023, the euro zone returned to significant current account surpluses. Will these surpluses help finance the ecological transition?
Since the start of 2023, the euro zone has returned to growing current-account surpluses, which reached 2.84 % of GDP in the third quarter of 2023. However, long-term capital inflows from non-residents remained at zero. In order to finance investments linked to the ecological transition, the euro zone cannot rely on long-term financing from non-residents, as the United States can, but it can use its surplus savings. But the problem is that these surplus savings, which come mainly from Germany and the Netherlands, but also from Ireland, are not invested in the euro zone, but in the rest of the world, due to the lack of capital mobility between euro-zone countries and also the attractiveness of the United States for investors. As long as capital mobility is not restored between euro-zone countries, the euro zone will lack the savings it needs to finance the necessary investment projects.
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Natixis
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