STEER

STEER (The Sustainable Transition and European Economic Resilience) studies how green industrial policy shapes growth, convergence, macro-financial fragility, and sovereign debt sustainability across Europe.

The project develops an open-source multi-regional stock-flow consistent input-output (MR-SFC-IO) framework that links:

• production networks,
• cross-border trade,
• public finance constraints, and
• financial-sector feedbacks.

Empirically, the model is designed to represent the EU-27 plus the rest of the world, with high sectoral detail.

The project focuses on three core questions:

1. How national, sector-specific Net-Zero subsidies propagate through European production and financial networks.
2. How fiscal constraints and debt heterogeneity shape the macroeconomic effects of green investment.
3. When coordinated European policy instruments outperform uncoordinated national programs.

Planned outputs include an open and documented modeling framework, a harmonized data and calibration pipeline, policy-facing scenario analysis, and peer-reviewed research articles.