STUDY ECONOMY AND FINANCE AN EU FUTURE FUND: WHY AND HOW? Background Paper of the Progressive EU Fiscal Policy Network Cédric Koch(Friedrich-Ebert-Stiftung), Dominika Biego ń , Felix Fleckenstein, Leon Krüger und Jan Philipp Rohde (Deutscher Gewerkschaftsbund), Lydia Korinek und Lukas Bertram(ZOE Institut für zukunftsfähige Ökonomien), Carl Mühlbach(Fiscal Future), Katharina Wiese(European Environmental Bureau), Florian Schuster(Dezernat Zukunft), Lucas Merlin Resende Carvalho(Bertelsmann Stiftung) July 2024 The climate crisis, geo-eco­nomic challenges and the rise of the far right require new EU financing instruments for the socio-ecological transforma­tion from 2027 onwards: Then, EU funding pots will halve in size, CO 2 prices will rise and new fiscal rules will bite fully. Estimated conservatively, addi­tional public investments of at least 1% of EU GDP per year are needed. A new EU future fund could close these gaps by raising private and public investments and steer the transformation in a politically and socially sustainable way. Control by parliaments and participation of social part­ners as well as purpose-­bound and socially condi­tionned spending should be key elements of a new fund.