Europe's Economy Needs Cooperative Efforts
J. Pisani-Ferry, A. Sapir & J. v. Weizsäcker, Bruegel | November 18, 2008
To answer the G20’s calls for budgetary stimulus, Europe needs a three-part recovery program. ++ EU member states must pledge to equally share the burden of recovery. ++ Because many countries will exceed EU deficit limits, budgetary boosts need to be accompanied by an agreement to strengthen the EU’s fiscal framework. ++ Member states should make a commitment to avoid borrowing at unusually high interest rates. ++ If the EU ignores these suggestions, “it risks paying a high economic and political price.”
