. public investment can positively affect economic growth in the current circumstances. in an environment of accommodative monetary policy, public investments have the strongest shortterm demand effects, including in terms of cross - country spillovers. 1 moreover, in times of elevated uncertainty, public investment raises confidence and thus tends to have a higher fiscal multiplier. 2 by raising confidence, a push in public investment is also likely to foster investment from private stakeholders. at the same time, we should not forget that the longer - term positive effects on the economy ’ s potential output and the impact on public finances crucially depend on the effectiveness of investment and the productivity of public capital. public investment and reforms, especially if geared towards medium and longer - term challenges such as environmental sustainability and digitalisation, can build a bridge towards a successful and inclusive recovery. we should not think about the two in isolation : combining reforms with an investment - led stimulus has the potential to raise growth even more. the two together should shape the future of our economies and ensure that they adapt to the “ new normal ” that will materialise once the peak of the pandemic is over. for these two reasons, the next generation eu package must become operational without delay. the package ’ s additional resources can facilitate expansionary fiscal policies, most notably in those euro area countries with limited fiscal space. we should also ensure proper arrangements to allow for the well - sequenced and effective spending of these funds. i therefore welcome the recent contribution by this parliament to foster transparency and accountability in the use of eu fiscal support. it is thus more important than ever for monetary policy and fiscal policy to keep working hand in hand. the treaty ’ s safeguards ensure that this is done in full respect of the ecb ’ s mandate and independence. conclusion let me conclude by underlining that europe ’ s response to the crisis thus far has not only been impressive, it has also been highly effective. entering the second phase of the crisis, we must persevere and continue with the same commitment to keep on delivering for europe ’ s people. the overwhelming majority of europeans – in fact, almost all of them according to the latest eurobarometer survey – demand such action from us. 3 as i said in my introduction, let ’ s ensure that the policies we are shaping allow us to get there. as johann wolfgang von goethe once said, “ in the realm of ideas, everything depends on enthusiasm ; in the real world all rests on perse

##verance ”. 123 1 see “ public investment in europe ”, economic bulletin, issue 2, ecb, 2016. 2 see “ public investment for the recovery ”, fiscal monitor, chapter 2, imf, october 2020. 3 / 4 bis central bankers'speeches 3 asked whether the eu should put in place an economic plan to help all eu member states recover, 88 % of eu respondents said they agreed with the statement. see “ standard eurobarometer 93 ”, survey requested and coordinated by the european commission, directorate - general for communication, october 2020. 4 / 4 bis central bankers'speeches