Paul De Grauwe, (2018), “The European Commission should accept democratic change in Italy”, VoxEU, 30 October 2018 Since the euro area’s debt crisis in 2010, the European Commission has seen a dramatic increase in its power to supervise and control national budgets. This development was motivated by the will of the creditor countries to impose budgetary discipline on the debtor countries, such as Greece, Ireland, Spain and Portugal. As a …Read More
Brexit: The next big 5 things to watch
Tim Haughton and Anand Menon, (2018), “Brexit: The next big 5 things to watch”, Washington Post, 29 October However, the actual prospect of Brexit may start to sharpen minds. A punitive Brexit could have long-term political and economic consequences not just for relations between the E.U. and Britain but also the wider geopolitical and security landscape in Europe. If the British people felt they were being punished by the E.U., …Read More
GDP up by 0.2% in the euro area and by 0.3% the EU28
Eurostat/GDP up by 0.2% in the euro area and by 0.3% the EU28/30 October 2018 Seasonally adjusted GDP rose by 0.2% in the euro area (EA19) and by 0.3% in the EU28 during the third quarter of 2018, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2018, GDP had grown by 0.4% …Read More
Italy’s Budget Isn’t as Crazy as It Seems
Ashoka Mody, (2018), “Italy’s Budget Isn’t as Crazy as It Seems”, Bloomberg Economics, 26 October Europe’s leaders have come down hard on Italy for its plans to increase spending with the aim of boosting growth and helping the poor. What they fail to recognize is that a little stimulus might be just what the Italian economy needs. The outlook for the global economy is deteriorating more rapidly than forecasters realize. …Read More
Household real income per capita up in the euro area and in the EU28
Eurostat/Household real income per capita up in the euro area and in the EU28/26 October 2018 In the euro area, in real terms, household income per capita increased by 0.4% in the second quarter of 2018, after an increase of 0.3% in the previous quarter. Household real consumption per capita increased by 0.3% in the second quarter of 2018, after an increase of 0.4% in the first quarter of 2018. …Read More
Reforming the EU fiscal framework: A proposal by the European Fiscal Board
Beetsma R., Thygesen N., Cugnasca A., Orseau E. , Eliofotou P., Santacroce S., (2018), “Reforming the EU fiscal framework: A proposal by the European Fiscal Board”, VoxEU.org, 25 October While today the need for fiscal rules is higher than ever, it is increasingly recognised that the Stability and Growth Pact (SGP) is not up to its task and requires a deep overhaul. In 2016, the Dutch presidency of the Council …Read More
The Italian Budget: A Case of Contractionary Fiscal Expansion?
Blanchard O., Zettelmeyer J, (2018), “The Italian Budget: A Case of Contractionary Fiscal Expansion?”, Peterson Institute for International Economics, 25 October Ιtaly’s government is in a standoff with the European Commission over its first budget proposal. Rather than reducing the public deficit, as the previous government had promised, the new government plans to increase it significantly. Because Italy’s debt is very high—over 130 percent of GDP—the proposed budget violates EU …Read More
Boosting investment in Greece
Barkas, P. and M. Pisu (2018), “Boosting investment in Greece”, OECD Economics Department Working Papers, No. 1506, OECD Publishing, Paris Aggregate investment has declined markedly over the crisis and has yet to recover. Reviving domestic and foreign investment is crucial to supporting the economic recovery, deepen Greece’s integration into global value chains and raising living standards. This will hinge primarily on improving the business environment, by lifting barriers to product …Read More
Generating employment, raising incomes and addressing poverty in Greece
Bulman, T. and M. Pisu, (2018), “Generating employment, raising incomes and addressing poverty in Greece”, OECD Economics Department Working Papers, No. 1505, OECD Publishing, Paris Employment is pivotal to strengthening Greece’s economic recovery, increasing social welfare and redressing poverty. Jobs are returning, making inroads into high unemployment, but their wages and skill levels are lower than many that were lost during the crisis. Greece’s hiring is benefiting from more flexible arrangements. …Read More
Spain’s Socialists Show Italy How to Do It
Ferdinando Giugliano, (2018), “Spain’s Socialists Show Italy How to Do It”, Bloomberg, 23 October The Spanish prime minister is running a minority government, with his Socialist Party holding less than one-quarter of the seats in parliament. Undaunted, he’s trying to cobble together a budget that would raise the deficit targets set by his center-right predecessor Mariano Rajoy. The measures, which include an increase in social spending and higher taxes on …Read More