Economic stimulus packages

In an effort to boost economic activity, governments across the EU have introduced a range of economic stimulus packages, even whilst implementing austerity measures. These range from bringing forward, or increasing, investment in infrastructure projects through to more specific schemes, such as the ‘car scrappage’ incentives enacted in many economies at the start of the crisis. In practice, many infrastructure investments suffer from implementation delays, limiting their short-term impact. There is also a risk that the economic benefits of stimulus packages are felt in localities other than those initially intended. Stimulus measures enacted in Finland for example have reportedly played a positive role in supporting economic recovery in Estonia as many of their firms benefit from trade links with Finland and Finnish firms.