European Growth: a Crisis Exit Strategy

While the European Union (EU) is facing a further aggravation of the recession, accompanied by the consequences of the 2008 global financial crisis, the support for economic activities is proving to be more than necessary. Primary concerns of member states must be based on increased efforts in competitiveness, employment, innovation, and assistance for small and medium-sized enterprises (SME), to boost economic growth on a short-term basis or on a longer-term horizon. In this regard, this article firstly suggests that the temporary support for economic activities is absolutely necessary and the possible arrangements are examined in detail. In addition, more emphasis must be put on innovation, as it plays a crucial role for economic growth. Particular attention is also drawn to SMEs, their potential impact on the productive fabric and their financial constraints. The concluding remarks are focused on the European market size, and the antagonism between competition policy and industrial policy is highlighted.