Is the EU facing an investment gap in health and education? Apparently yes say Niccolo Cusumano and Francesca Casalini, both from Bocconi University, and Filippo d’Arcangelo, Toulouse School of Economics in a presentation at the EIB.
Under the framework of a STAREBEI research grant, the three researchers built a country specific investment model to forecast future needs for social infrastructure investment (stock and flows) in the 28 countries of the EU in the 2015-2040 period.
The model shows that to meet forecast needs, investment in healthcare and, to a lesser extent, education have to pick up. At the same time, demographic changes are leading towards a deep reconfiguration of healthcare and education systems.
As public finances are still stretched, the researchers recommend the development of financial and legal instruments involving private investors so that the social output of the infrastructures to be sponsored be more effective: social impact bonds , contractual clauses triggered by performance mechanisms, interest rate modulated according to the social objectives obtained are some of the ideas presented.
Click here for the final report of this STAREBEI project.