Eurozone Crisis

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 […]

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|

Matteo Renzi must work with Italian trade unions rather than against them if he is serious about reforming Italy’s labour market

Italian Prime Minister Matteo Renzi has made reforming the Italian labour market a priority for his government. Chiara Benassi and Niccolo Durazzi assess the argument that Italy’s trade unions are an obstacle to reforms on the basis that they support only their core membership, rather than a broader agenda which includes ‘atypical’ workers such as agency staff. They argue that […]

German austerity is not only damaging the Eurozone, but is also starving the country of its own much needed investment

Bob Hancké of the LSE argues that it’s not just the rest of Europe that is suffering from Germany’s obsession with fiscal austerity. While such a strategy might be justified in terms of its wider effects across Europe, the German economy itself is also struggling from the pressures of restrictive spending policies. He argues that unless the country increases public […]

The Eurozone: Here we Go Again

Bob Hancké of the LSE warns that, with the Eurozone economy once again skirting recession, it’s time to look again at proactive measures to boost demand. Here we go again. Two years after Mario Draghi’s ‘all that it takes’ moment, the eurozone is again staring into the abyss. Growth has collapsed over the last six months, inflation is now so […]

October 24th, 2014|Eurozone Crisis|0 Comments|

Mario Draghi is right to doubt that austerity is working, but wrong to argue for wage reductions

Martin Myant and Agnieszka Piasna, of the ETUI in Brussels, pick apart recent pronouncements from the ECB’s Mario Draghi Mario Draghi’s speech of 22 August 2014, Unemployment in the euro area,[1] represents a change in ECB thinking and a recognition that austerity is not bringing economic recovery in the Eurozone. His solution appears to include some degree of demand stimulus but […]

The State of Welfare in Greece: a call for courageous structural reforms

Yiannis Korkovelos argues that a strategy of containing welfare costs regardless of the social costs has proven to be a difficult balancing act. While Greece has been getting to grips with its public finances, developments in healthcare and pensions have exposed a critical need for genuine structural reform Four years on from the March 2010 bailout package, Greek society has experienced several […]

Juncker: what is he good for?

By Steve Coulter, LSE Leaving aside David Cameron’s petulant and self-destructive campaign against Jean-Claude Juncker, what can we expect from the next European Commission President? Although from the centre-right, Juncker is understood by many to be much more pro-growth than his predecessor, Barroso. Accordingly, some on the left are hoping for a Commission that will be less obsessed with austerity. […]