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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