No miracles in southern Eurozone without resource reallocation

Ramon Xifré 12 September 2014

a

A

The most acute phase of the Global Crisis appears to be over in the Eurozone. Prospects for growth are still moderate but no recession is foreseen in the short-run and sovereign debt markets seem to be getting out of the turbulences. The prevailing view is that the countries that have been under the Economic Adjustment Programmes (EAP) have drastically improved their conditions with the recovery extending to large, non-EAP but ‘vulnerable’ member states like Spain, Italy, and France.

a

A

Topics:  Europe's nations and regions Global crisis Productivity and Innovation

Tags:  Eurozone crisis, firm size, current account rebalancing, structural reforms, industrial policy

Structural reform lowers country risk

Christopher Findlay, Silvia Sorescu, Camilo Umana Dajud 29 August 2014

a

A

In late 2008, financial stress became widespread and perceptions of risk hit new highs. Concerns related to contagion among countries also had an increasing effect on premiums and increased the financing cost for many economies. The response to this problem was austerity – to stress the importance of getting the fiscal situation, and thereby the levels of debt of those countries with this problem, under control.

a

A

Topics:  Financial markets

Tags:  structural reforms, risk premiums, Credit Default Swaps, sovereign debt

Lacklustre investment in the Eurozone: Is there a puzzle?

Marco Buti, Philipp Mohl 04 June 2014

a

A

On the importance of investment for the Eurozone economy

According to the European Commission’s most recent forecast, real economic activity in the Eurozone is expected to recover at a moderate pace until 2015, and to remain significantly weaker than in the US (European Commission 2014a).

a

A

Topics:  EU policies Macroeconomic policy

Tags:  eurozone, growth, European Commission, investment, uncertainty, structural reforms, Bankruptcy, Eurozone crisis, public investment, banking union, financial fragmentation

Delivering the Eurozone ‘Consistent Trinity’

Marco Buti, Maria Demertzis, João Nogueira Martins 30 March 2014

a

A

As argued in an earlier commentary, the financial crisis exposed important economic inconsistencies in the way that EMU operated.1 Although progress has been made, the reality is that more needs to be done. A number of countries still need to consolidate their public finances further, and also implement structural reforms to promote growth and sustain satisfactory welfare systems. At the same time, there is a need for vulnerable countries to ensure consistency between regaining competitiveness and the sustainability of private and public debts.

a

A

Topics:  Europe's nations and regions Macroeconomic policy

Tags:  eurozone, euro, EMU, imbalances, fiscal policy, structural reforms, fiscal consolidation, debt, Eurozone crisis, Stability and Growth Pact, banking union, internal devaluation

Structural reforms and regional convergence

Natasha Xingyuan Che, Antonio Spilimbergo 11 July 2012

a

A

The Eurozone crisis is at heart a crisis of failed regional convergence and lack of structural reforms. The euro was supposed to facilitate a rapid convergence in the level of income and, most importantly, of productivity across countries. The founding fathers of the euro saw the single currency as a necessary condition for a single market, which, however, turned out to be incomplete without structural reforms.

a

A

Topics:  Europe's nations and regions Global economy

Tags:  structural reforms, Eurozone crisis, regional convergence

A different country: Russia’s economic resurgence

Lúcio Vinhas de Souza 13 June 2008

a

A

Russia is now once again one of the ten largest economies in the world.1 Moreover, Russia is the third largest EU trade partner and one of its essential energy suppliers. This recovery makes Russia an economic – and political – actor that we cannot ignore.

a

A

Topics:  Development

Tags:  Russia, growth, economic performance, structural reforms