Stepping up Growth Policies
AbstractThe eurozone is in recession and will show negative growth in 2012, notes Stefano Micossi in this new CEPS Policy Brief. Hopes that fiscal consolidation could spur growth by improving household and business confidence are not materialising, because in reality, domestic demand has been hit too hard by fiscal consolidation, and investment throughout the Union remains well below pre-crisis levels. The author calls upon the European Council to consider launching a new growth initiative, centered on mobilising vast resources at EU level for investment in worthy projects of common interest Europe-wide. The key goal is to make sure that there is light at the end of the tunnel, lest at some stage the unbearable social and political costs of adjustment lead to a breakdown of domestic political systems and disorderly default.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for European Policy Studies in its series CEPS Papers with number 6696.
Length: 4 pages
Date of creation: Mar 2012
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margarita Minkova).
If references are entirely missing, you can add them using this form.