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More Productivity, Less Austerity Will Save Europe

Editorial, The Washington Post | October 26, 2011

The lack of a common fiscal policy is what allowed the Eurozone debacle to occur. ++ Europe has at the same time experienced extremely low levels of growth compared to the US and emerging markets, forcing it to accrue debt to prevent living standards from deteriorating. ++ Germany's austerity plan will do little to stimulate growth in Southern Europe. ++ Europe requires wide-reaching structural reforms, including increasing the retirement age and getting rid of protectionist policies, to give productivity a much-needed boost.

 

 
Tags: | Eu Crisis | productivity | austerity | Germany | France | Spain | Italy | Greece | Portugal | US | growth | debt crisis |
 
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Eva  Maria Krockow

Wed, Oct 26th 2011, 11:10

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Interesting article – particularly the first observation on Europe’s “squabbling” leaders is important in my opinion. During its financial crisis, the EU is lacking unity and mutual support more than ever. This was shown powerfully by the UK’s recent debates concerning a possible referendum on continued EU membership. The existing Euro-skepticism has been fuelled by the current economic troubles, with 66% of the British public and 111 MPs in favour of the aforementioned referendum. Shared fiscal policies combined with economic growth are indeed important for Europe’s financial recovery. However, a prerequisite for the latter points is certainly the end of petty squabbles between the leading EU countries and an outspoken commitment to the union.
Tags: | EU; debt crisis |
 

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