Pisani-Ferry, J. (2014) “Can Investment Save Europe?“, Project Syndicate, 30 Ιουλίου.
Economic growth in Europe remains disappointing. Virtually all European Union members are expected to post higher output in 2014; but, according to the International Monetary Fund’s latest projections, the average growth rate in the eurozone will barely exceed 1%. And, whereas the British economy is displaying strong momentum, its GDP has only now surpassed the pre-crisis mark. In per capita terms, the EU is still poorer than it was seven years ago.
In this context, a new policy target has emerged: investment. Italian Prime Minister Matteo Renzi, who currently holds the EU’s rotating presidency, has pushed for it, and Jean-Claude Juncker, the president-elect of the European Commission, has called it his “first priority.” His goal for the next three years is to mobilize an additional €100 billion ($134 billion) per year (0.75% of GDP) for public and private investment.
Investment is certainly a politically appealing theme. It can unite Keynesians and supply-side advocates; proponents of public spending and supporters of private business can stand together. And historically low long-term interest rates undoubtedly provide an exceptionally favorable opportunity to finance new ventures.
Σχετικές αναρτήσεις:
- Eichengreen, B. & Panizza, U. (2014) “Can large primary surpluses solve Europe’s debt problem?“, VoxEU Organisation, 30 July.
- Papadimitriou, Β. D. & Toay, T. (2014) “Co-operative Banking in Greece: A Proposal for Rural Reinvestment and Urban Entrepreneurship“, Levy Economics Institute, Research Project Reports, July.
- Buti, M., Mohl, Ph. (2014) “Lacklustre investment in the Eurozone: Is there a puzzle?“, www.voxeu.org, 4 June.