Austerity and growth: a fine balancing act

Peter Taberner, New Europe, 25.05.2012

Quote

Link to original article


As EU leaders met on 23 May to discuss which course of action should be taken to ensure economic growth, Germany and France were already at loggerheads over the issuance of ‘Eurobonds’, which would be underwritten by all 17 eurozone states. […]

Janis Emmanouilidis, a senior policy analyst with the European Policy Centre, opined: “First of all there will not be a result from the 23 May meeting, and its more of a precursor to the June summit. The question is to what level the actual effect on growth will be from the choices made, it’s not about an emphasis on one decision on a single way of thinking , its about producing a package.”

“The devil is really in the detail of the measures for growth to be used, the member states have to reduce public expenditure and deficits as the overall levels of debts are unsustainable. There will be no miracle happenings for economies such as Greece and Portugal, that will be a long process that will take years.”

Looking to the future it’s the PIIGS economies that will need to be pulled up if the EU is to recover sustain ably.

Emmanouilidis added: “If we have a growth pact that targets the whole of the EU the effects will not be great. Part of the structural problem for EU member states is that there has not been a convergence of European economies, the divergences has contributed to the crises, and the vulnerable countries are the ones that need help.” […]

For the entire article see here.


Latest media contributions

Die Zeit kühner Prognosen ist vorüber
Quotes, Die Presse (Austria), 27.11.2020

EPC Annual Conference 2020 – European integration in light of COVID-19: United in adversity or my country first?
Online Conference, YouTube, 13.11.2020

US election: EU pins hopes on Joe Biden victory
Quotes, Deutsche Welle (English), 01.11.2020

US-Wahl: EU hofft, dass Joe Biden neuer Präsident wird
Quotes, Deutsche Welle (German), 31.10.2020

The German Presidency and the Conference on the Future of Europe: high hopes, low expectations
Online Event, YouTube, 28.10.2020

EPC Update – analysis of EU Summit on 1/2 October
Online Briefing, YouTube, 02.10.2020

Ursula von der Leyen: Erste Rede zur Lage der Union
Interview, WDR 5 (German radio), 16.09.2020

"Eine Gesundheitsunion ist ein sehr ambitioniertes Ziel"
Interview, rbb (German radio), 16.09.2020

Ein ganz anderes Europa
Interview, tagesschau.de, 15.09.2020

Comment l'Europe tente de mettre fin au bazar des avis de voyage
Quotes, La Libre Belgique, 04.09.2020


Media