Eurozone Crisis

EMU and Social Cohesion: can they co-exist?

By Steve Coulter, LSE The Eurozone crisis has exposed a dramatic set of fault lines between Europe’s nation-states and the supranational institutions of the European Union which purport to unite them. These fissures have already produced a political earthquake in the form of big votes for xenophobic and/or anti-EU parties in recent European elections. But if EU leaders can’t demonstrate […]

Debunking 10 ‘pseudo facts’ about the crisis

By Steve Coulter, LSE Thomas Piketty is not the only French economist opposing the prevailing economic orthodoxy. One group of France-based academics, ‘les économistes atterrés’ (economists against austerity) has been denouncing austerity policies, inequality and the financialisation of the European economy since its formation in 2010. They have mounted an appeal to voters in the coming European elections (read it […]

On Peripheral Debt

By Bob Hancké, LSE Those who think the euro crisis is now reaching a relatively benign dénouement may feel vindicated. Italy and Spain are borrowing at low interest rates, and yesterday even Greece staged a successful return to the bond markets, with a yield that was significantly lower than could be expected from a country that has not seen a […]

April 24th, 2014|Eurozone Crisis|1 Comment|

When will Europe recover?

Martin Myant, ETUI The European Union has performed exceptionally badly in economic terms in comparison with the world as a whole since 2008. The ETUI’s publication Benchmarking Working Europe 2014 poses the question of whether we are not half way through a wasted decade. The first half has been lost already and current policies promise little more than slow growth […]

ETUI report underlines the costs of austerity

By Steve Coulter, LSE Just out from the European Trade Union Institute (ETUI) is ‘Benchmarking Working Europe 2014’, the ETUI’s annual stock-take of macro-economic, social and bargaining conditions in Europe. Reflecting the impact of five years of austerity, it makes for fairly gloomy reading. Statistical indicators in the report show not only that the crisis is not ending, it’s actually […]

The Spectre Haunting Europe

By Bob Hancké, LSE With inflation dipping significantly below 1% in the euro zone, we have now entered dangerous territory, and it is far from obvious how to get out. The basics first: an average inflation rate of 0.7-0.8% is far below the already tight target that the ECB has set itself of ‘below but close to 2%’ (in the […]

Karlsruhe and the OMT

By Bob Hancké, LSE

I just read this blog post by my colleague Paul De Grauwe on the Karlsruhe ruling. His point is that the judges on the German Constitutional Court profoundly misunderstand the political economy of central banking, and therefore see problems where none exist. In essence, his point is, a central bank does not run the risk of […]

Social imbalances – what’s on the Commission’s mind?

By Steve Coulter, LSE

Laszlo Andor, the EU’s Commissioner for Employment, recently spoke to the Hans Boeckler Stiftung on how to tackle social imbalances in Europe. Andor, generally seen as a friend of the European labour movement, made a couple of interesting points. He pointed out that national divergences in poverty within the Eurozone had sharpened considerably since 2007, with data […]

The Rain in Spain

By Bob Hancké, LSE

Here is an interesting short piece on wages and labour force composition in Spain by Edward High on EconoMonitor. It goes through a few graphs, making several very important points. One, productivity went up because unskilled workers were laid off. With real wages at best stagnating, that means unit labour costs fell dramatically – since those […]

The wrong solution for the wrong problem: Why Europe needs to shift away from fiscal policy and focus on labor markets

By Alison Johnston, Oregon State University As the European debt crisis enters its sixth year, European elites continue to propose new policy “solutions” that previously were deemed by integration scholars as a bridge too far.  From the creation of Europe’s first banking union to the establishment of common EMU fiscal resources that faltering member-states could draw upon, to even Angela […]

February 27th, 2014|Eurozone Crisis|0 Comments|