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Why Europe Needs Two Euros, Not One

Melitz, J. (2014) “Why Europe Needs Two Euros, Not One“, VoxEU Organisation, 02 Ιουλίου.   As the Eurozone cautiously implements stabilising reforms, Germany is forced to go further with concessions than it would prefer. This column suggests that it would be beneficial for discontented members to consider the formation of a second monetary union. The second euro can be constructed better than the first, bringing the discontented members exchange-rate adjustments …Read More

Low interest rates and secular stagnation: Is debt a missing link?

Borio, C. & Disyatat, P. (2014) “Low interest rates and secular stagnation: Is debt a missing link?“, VoxEU Organisation, 25 Ιουνίου.   Real interest rates have fallen to historic lows, and some economists are concerned that an era of secular stagnation has begun. This column highlights the role of policy frameworks and financial factors – particularly debt – in linking low real interest rates and sluggish economic growth. Policies that …Read More

The new European Parliament: Workable but impaired?

Piedrafita, S. & Lannoo, K. (2014) “The new European Parliament: Workable but impaired?“, Politics and Institutions, CEPS Commentaries, 27 Ιουνίου.   Given that the new European Parliament will be more Eurosceptical, radical and fragmented than its predecessors, Sonia Piedrafita and Karel Lannoo warn that it will face even tougher constraints in building the necessary majorities to pass legislation and adopt decisions. They argue in this new Commentary that this grave …Read More

Europe’s Digital Reactionaries

Waterworth, J. (2014) “Europe’s Digital Reactionaries“, Project Syndicate, 01 Ιουλίου.   Many European politicians praise the Internet. Unfortunately, their lofty rhetoric often rings hollow. While calling for a strong digital agenda in one breath, the same politicians, supported by protectionist interests at home, often argue for putting a brake on the Internet’s “disruption” by imposing strict new regulation. Such double-talk is misguided. If Europe is to prosper in the twenty-first …Read More

The UK has been one of the main beneficiaries from free movement of labour in the EU

Favell, A. (2014) “The UK has been one of the main beneficiaries from free movement of labour in the EU“, LSE EUROPP, 01 Ιουλίου.   Free movement of labour across the EU has become a controversial issue in several European countries, with parties such as UKIP and the Front National calling for restrictions on EU immigration. Adrian Favell writes on the debate over the issue within the UK. He argues …Read More

In response: Aligning national interests in Europe’s monetary union – answering comments on my Opinion ‘Europe has wasted a good crisis

Mody, A. (2014) “In response: Aligning national interests in Europe’s monetary union – answering comments on my Opinion ‘Europe has wasted a good crisis’“, Bruegel Institute, 01 Ιουλίου.   In my opinion published on Friday, I argued that a growing east-west divide, a core-periphery rift, the rise of extremist parties and the adoption of extremist rhetoric and their policy agenda by the mainstream parties are reshaping the concept of Europe. …Read More

Strengthening EU border security won’t stop the deaths of migrants in the Mediterranean

Perkowski, N. (2014) “Strengthening EU border security won’t stop the deaths of migrants in the Mediterranean“, LSE EUROPP, 01 Ιουλίου.   On 30 June, a fishing boat containing the bodies of thirty people was found heading for Italy, once again highlighting the problem of migrant deaths in the Mediterranean. As Nina Perkowski writes, the incident came at a time when Italian Prime Minister Matteo Renzi had been pushing for the …Read More

Euroscepticism vs. political pragmatism: The Finns Party tones down its criticism of the EU

Iso-Markku, Τ. (2014) “Euroscepticism vs. political pragmatism: The Finns Party tones down its criticism of the EU“, Politics and Institutions, EPIN Commentaries, 26 Ιουνίου.   While many Eurosceptic parties in Europe achieved historical successes in this year’s EP elections, Finland’s populist Finns Party was unable to fulfil its own high expectations. With the eurozone crisis at least temporarily subsiding and Finland’s own economy struggling, the party has been unable to …Read More

The Great Recession’s long-term damage

Ball, L. (2014) “The Great Recession’s long-term damage“, VoxEU Organisation, 01 Ιουλίου.   Whereas textbook macroeconomic theory suggests that output should return to potential after a recession, there is mounting evidence that deep recessions have highly persistent effects on output. This column reports estimates of the long-term damage caused by the Great Recession. In most countries in the sample, the loss of potential output – 8.4% on average – has …Read More

Europe Is Closely Studying Lessons from Japan – They Fear Euro Zone Is Falling Into Similar Lethargy

Walker, M. (2014) “Europe Is Closely Studying Lessons from Japan – They Fear Euro Zone Is Falling Into Similar Lethargy”, The Wall Street Journal, 29 Ιουνίου.   If Europe is tilting toward becoming the next Japan, does that mean it needs its own version of Abenomics? Japanese Prime Minister Shinzo Abe’s announcement last week of fresh measures to improve sluggish growth coincides with an intensified debate in Europe about whether the …Read More