This paper assesses the potential economic impact of Next Generation EU (NGEU), focusing on the euro area. Its findings … pandemic-induced crisis and longer-term modernisation of the euro area economy through their digital and green transitions …, fiscal stimulus and risk premium. Overall, NGEU may increase gross domestic product (GDP) in the euro area by up to 1.5% by …

assesses the macroeconomic impact on the euro area of different uses of NGEU, using a large dynamic stochastic general … equilibrium (DSGE) model of the euro area and global economy (EAGLE) that has been adapted to reflect the modalities of the NGEU …