What will be the macroeconomic effects of the European recovery plan?

The EUR 750 billion European recovery plan over the period 2021-2023 will finance investments that support growth and job creation and contribute to the energy transition and digital development, and will be financed by EU long-term bond issues. We can make a microeconomic analysis of the effects of the recovery plan (on productivity gains and potential growth, on the energy sector, on innovation) , but it is clear that its macroeconomic effects, which we are interested in here, will be positive: An increase in investment that will absorb a significant part of Europe's savings surplus, which is now being lent to the rest of the world, resulting in additional capital accumulation and increased potential growth in Europe , and an increase in the return on European savings; A reduction in the euro zone's accumulation of external assets and therefore a lower risk of euro appreciation in the medium term; Lower government bond issuance by each of the euro-zone countries, and therefore a tightening of yield spreads between the countries.