Eurozone Crisis

We are all Ordo-liberals now

Bob Hancké of the LSE examines the history of a dangerous idea – Ordoliberalism, or the belief that balanced budgets produce growth

At what was probably the most unpropitious moment in recent economic history to make the claim, US President Richard Nixon declared that we ‘are all Keynesians now’. In his view, the key problem of macroeconomic management, namely how […]

Europe needs a pay rise and young Europeans need jobs

Steve Coulter of the European Trade Union Institute cautions that improving growth figures in the European Union mask widening regional disparities in GDP per head and real wages, while many of the jobs that have been created are part time and/or precarious. Action to sustain the modest recovery and share out its spoils should go beyond sustaining demand – […]

Why internal devaluation fails

Martin Myant of the European Trade Union Institute presents evidence from a new book analysing national responses to the eurozone crisis which shows that the European Commission’s gauge of competitiveness – Unit Labour Costs – was the wrong measure and contributed to disastrous policies which deepened the recession. The solution, he says, is to focus on improving competitiveness by […]

  • Permalink Gallery

    The results of Italy’s 2012 labour-market reforms – no solution to unemployment

The results of Italy’s 2012 labour-market reforms – no solution to unemployment

Gabriele Piazza and Martin Myant of the European Trade Union Institute criticise recent labour market reforms in Italy which aim to tackle unemployment by cutting protection for workers on permanent contracts. There is no evidence that this works, and Italy would be better off addressing structural problems in the Italian economy

In June 2012 Italy introduced a package of labour-market […]

  • Permalink Gallery

    Why should ‘the German pensioner’ care about bailing out Greece?’

Why should ‘the German pensioner’ care about bailing out Greece?’

Yiannis Korkovelos argues that there are advantages for creditor countries in keeping Greece in the eurozone; while Greece, in turn, should bring forward courageous reforms with Mr Tsipras having the opportunity to be remembered as a moderniser After more than 17 hours of negotiations, white smoke has come out of the EU Summit. The marathon summit has resulted in a […]

  • Permalink TOPSHOTS
The leader of the leftist Syriza party, Alexis Tsipras, listens to a question during a televised press conference on January 23, 2015 at the Zappion Hall in Athens. Greeks vote on January 25 in a general election for the second time in three years, with radical leftists Syriza leading the polls with a promise to renegotiate the international bailout that has imposed five years of austerity on the country.   AFP PHOTO/LOUISA GOULIAMAKIGallery

    Tsipras to Germany: German Taxpayers are not paying for Greek Pensions

Tsipras to Germany: German Taxpayers are not paying for Greek Pensions

Alexis Tsipras, the Greek Prime Minister, has rebuffed suggestions that bailout money going to Greece is being spent on pensions and salaries. In a comment piece for the German news magazine, Der Tagesspiegel (read it here in English on the EurActiv blog), Tsipras says that the assumption that Germany is paying for the wages and pensions of the Greek […]

  • Permalink Gallery

    Spain’s labour market reforms: No solution to its employment problems

Spain’s labour market reforms: No solution to its employment problems

Martin Myant and Laszlo Horwitz of the ETUI in Brussels argue that the Spanish economy, after experiencing one of the largest falls in employment and increases in unemployment of all EU member states, is now showing some signs of recovery Since 2010, far-reaching reforms, billed as making the labour market more flexible and efficient, have been implemented. It was claimed […]

The Paradox of the ‘German Model’

Steffen Lehndorff of the University of Duisberg-Essen criticises the presentation of Germany as offering an ideal ‘model for Europe’. Instead, its labour market reforms in the early 2000s allowed it to export deflation to the rest of Europe, with disastrous consequences Paul Krugman recently stated that, ‘if you try to identify countries whose policies were way out of line before […]

  • Permalink Gallery

    Italian unions and Renzi’s Jobs Act: opposition and new proposals

Italian unions and Renzi’s Jobs Act: opposition and new proposals

Chiara Benassi of the Max Planck Institute in Cologne and Niccolo Durazzi of the LSE respond to critiques of their blog post on November 18th, in which they refuted claims that Italian trade unions are the main obstacle to reform in the country In response to our earlier article which appeared on the EUROPP and NETUF blogs, Giovannini and Maselli […]

Juncker’s false hope: a public investment plan without public investment

Martin Myant of the ETUI argues that the European ‘investment plan’ unveiled in late November by Jean-Claude Juncker falls far short of what is needed to get Europe growing again. Jean-Claude Juncker finally announced his long-awaited proposal for an investment plan on 26 November. It was billed as the central plank in his determined effort to spend five years saving […]

December 2nd, 2014|Eurozone Crisis|0 Comments|