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Assessing the Impact of EU Digital Interventions (2021-2027): A Dynamic Spatial General Equilibrium Approach

Pablo Casas (), Tryfonas Christou (), Abian Garcia Rodriguez (), Nicholas Joseph Lazarou (), Montserrat Lopez Cobo (), Simone Salotti (), Serena Signorelli (), Juan Torrecillas Jodar () and Carlos Torrecilla Salinas ()
Additional contact information
Pablo Casas: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Tryfonas Christou: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Abian Garcia Rodriguez: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Nicholas Joseph Lazarou: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Montserrat Lopez Cobo: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Simone Salotti: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Serena Signorelli: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Juan Torrecillas Jodar: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Carlos Torrecilla Salinas: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No 2025-10, JRC Working Papers on Territorial Modelling and Analysis from Joint Research Centre

Abstract: This paper examines the macroeconomic effects of digital investments in the European Union during the 2021–2027 period. Using a dynamic spatial multi-country and multi-sector general equilibrium framework calibrated for all EU Member States, we analyse how different forms of digital interventions, such as public infrastructure investment, firm-level digitalisation, and skills development, affect the macroeconomy of EU27. The analysis draws on a novel dataset that covers approximately €175 billion of planned investments financed through five major EU programmes. Results show that digital investments have a positive and lasting impact on output, employment, as well as on capital accumulation and household consumption across the Union, revealing an interesting price-competitiveness channel for net exports. The inclusion of cross-border digital spillovers further amplifies these effects, suggesting that improvements in digital connectivity and infrastructure generate benefits beyond national economies.

Date: 2025-11
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:termod:202510

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