A “new deal” needn’t be green

Britain is seeking measures to revive its Covid-ravaged economy. It should choose from a broader palette than just “green”, says Matthew Lynn.

Wind turbines © GUILLAUME SOUVANT/AFP via Getty Images
We can buy our green electricity from the French.
(Image credit: Wind turbines ©)

President Macron of France (pictured) is betting big on a €100bn reboot of the economy that will focus on green technologies. The EU’s new €750bn coronavirus rescue fund will also focus on environmental projects. In Germany, Chancellor Angela Merkel has pledged €40bn for a green recovery fund. Joe Biden, if elected as president of the US, has said he will spend big on a “green new deal”. Massive green stimulus packages are all the rage, and there will be those arguing that Britain should do something similar. That would be a mistake.

The perils of overinvestment

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.