growth

Investing in ‘pockets of excellence’ in periphery countries would help the EU address its lack of competitiveness

The outlook for several European economies has improved over the last year, following the deep recessions experienced across Europe during the financial crisis. Terence Tse and Mark Esposito write that while there has been some progress, the key problem in EU states is still a lack of competitiveness. They argue that promoting investment should be a key priority and that […]

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Greater public spending on alternative energy in Europe may be the key to a sustainable recovery.

The public debate about a European economic recovery has been dominated by arguments over stimulus and austerity policies, and divisions between the North and the South. In an attempt to move away from these dichotomies, Afzal Siddiqui and Max Hänska argue that Europe should adapt to the shifting centres of economic gravity, harness its comparative advantages, and manage its recovery […]

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No Triple Dip does not mean a good recovery for the UK

John Van Reenen reacts to the news this week that the UK has avoided economic contraction in the last quarter. Whilst Osborne may see this as cause to celebrate, there is nothing commendable about an economy that continues to stagnate. This news should not be taken as a sign to continue down the path of austerity. Rather, a policy change, starting […]

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Despite rising unemployment and a lack of economic growth, Greece cannot afford to ignore the challenge of controlling inflation.

Since the beginning of the eurozone crisis, Greece has experienced a sharp fall in GDP and a large increase in unemployment. Nicholas Apergis argues that another policy challenge facing Greece is also highly significant: controlling inflation. Assessing the inflation dynamics within the country between 1981 and 2009, he outlines three dynamics important to understanding Greek inflation: inflation persistence, inflation spillovers […]

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EU policy makers can no longer rely on the growth miracle of emerging markets to reduce the need for domestic sources of growth.

A provocative Project Syndicate op-ed by Dani Rodrik – arguing that the recipe that helped generate the growth miracles of the last decades will prove harder in the future – has generated an interesting debate in the blogosphere about the old economics question of convergence between countries. Jérémie Cohen-Setton and David C. Saha summarize the current debate and recommend that EU policymakers […]

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Europe’s new fiscal rules will not work without more budget transparency

The EU’s Fiscal Compact aims to ensure that Eurozone governments’ finances are balanced or in surplus. In a new study, Joachim Wehner shows that budget rules alone may not help to ensure more prudent fiscal governance in the EU, and may even do more harm than good – unless they are underpinned by high-quality fiscal reporting. Many European governments are adopting […]

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If we are to prevent another lost decade, we need macroeconomic policies to restore economic activity, and public investment to power sustained and productive growth.

 Jeffry Frieden examines the continuing economic malaise in the developed world and argues that the immediate need in both Europe and the United States is for macroeconomic policies to help rekindle economic growth, and systematic plans to restructure household and sovereign debts. Without both, which entails a balancing act and opposition from powerful interests, we are headed for another lost […]

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Tax breaks and VAT-free trade areas can help to kick start the regional growth that Greece badly needs

While Greece’s recent elections have reassured the international markets for now, this confidence is likely to disappear once again if Greece does not undertake more reforms aimed at restarting growth. Dimitrios Thomakos argues that one of Greece’s major problems is the concentration of population around Athens. A targeted initiative of tax breaks for individuals and businesses in combination with the […]

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By unleashing the low-carbon economy we can create jobs and reduce deficits and debts.

Voters in Greece, France and the United Kingdom have sent a clear signal in the past month that they want governments to give priority to jobs and opportunities as well as reducing deficits and debt. Lord Nicholas Stern argues that unleashing the low-carbon economy could achieve these goals. Framed by credible and stable policies, the European Union could then unlock private […]

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Ireland needs the legal guarantee of access to cash and credit that the Fiscal Compact Treaty will deliver.

Which stance should Ireland take on the European Union’s Fiscal Compact? In the lead up to Ireland’s referendum on the Compact, Ben Tonra argues that the country needs to support the treaty. However, he believes its prescription, austerity, is of dubious economic value, and that Angela Merkel must allow for growth policies as well as a plan for a fiscal […]

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Brussels blog round up for 28 April – 4 May 2012: Political winds are blowing against Germany, calls to boycott Ukraine and Euro 2012, and is Schengen under threat?

Chris Gilson and Julian Kirchherr take a look at the week in Brussels blogging. The EU Centre In the wake of the financial and economic crisis, freedom of movement is under attack in the EU. The Centre for European Reform explores why and outlines the reasons why France may leave the Schengen area. However, each Member State – including the United Kingdom – […]

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The growth agenda is slowly gaining ground in Europe, but much greater reforms are still needed if Greece is to overcome its challenges.

Vassilis Monastiriotis argues that while the popularity of François Hollande may signal that the growth agenda is gaining currency in Europe, Greece still faces significant difficulties. In light of the country’s looming elections, he argues that the internal problems and pressures that helped lead Greece into the current crisis mean that significant structural reforms are still needed if the country […]

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With more than 5 million more Europeans now unemployed due to the crisis, the EU’s approaches to tackling unemployment are treating the symptoms, not the causes.

One of the European Union’s main priorities is tackling growing unemployment. However, the current approach fails to deliver, argues Ania Plomien. While Europe undertakes a number of labour-supply-measures such as training schemes and apprenticeships, it is the demand for labour in Europe which is still essentially lacking. The commitment of European Union (EU) institutions to foster employment and advance social […]

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The Swedish Social Democrats have an opportunity to redefine their role in Swedish politics and regain the mandate to shape Sweden’s future

With the recent election of a new party leader, the Swedish social democrats have the opportunity to regain their status as a ‘catch-all’ party, argues Christian Kellermann.  This article originally appeared on Social Europe on 22 March. With a new party leader in place, the Swedish social democratic party (SAP) is once again trying to find its role in the […]

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With no political union in Europe, the Euro crisis may be a ‘never ending game’ for deep-rooted economic reasons

The long term causes of the Euro crisis were a Euro monetary policy that in combination with wage policies fuelled rapid growth and wage inflation in smaller economies like Greece, Portugal, Spain and Ireland, while simultaneously depressing growth in the stronger economies like Germany. Bob Hancké argues that fiscal federalism, i.e transfer arrangements between the faster and slower growing regions, may have […]

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In the ‘Europe 2020 Agenda’ the EU has a strategic plan to build a smart, sustainable and inclusive economy. Looking past current crises, we should re-focus on these long term goals

Europe’s main strategy plan for growth identifies feasible improvements to employment, innovation, education, social inclusion and climate/energy. Sir Tony Atkinson argues that these collective goals give European countries an advantage over competitors – yet this key Agenda is in danger of being overlooked in debates about austerity, growth and the future of the Euro. Public debate about Europe has been […]

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Without a rise in German wages, 2012 may see the beginning of the breakup of the Eurozone

Tim Leunig offers his predictions for growth in the Eurozone in 2012, arguing that without significant intervention by Germany, in the form of pay rises for all workers, the Eurozone may well start to collapse. The world economy will grow in 2012, but growth will be largely confined to developing nations. Their ability to grow even when developed economies are […]

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