The fiscal position of European countries with the ecological transition.

The European Union has set itself the ambitious target of achieving carbon neutrality by 2050. However, European countries must also meet the debt sustainability condition of the Stability Growth Pact: their debt-to-GDP ratio must be below 60%. The idea of this thesis is to analyze the fiscal position of European countries vis-à-vis this ecological transition. To this end, scenarios have been predicted: the public deficit tends to increase over the long term. Environmental spending and investment do not increase as much as the Green Deal objective. By modelling a linear regression using Feasible GLS, we observe a weak interaction between the level of debt and the level of spending on environmental protection. However, there would appear to be a threshold linked to debt levels, which would act as a constraint on spending on environmental protection.