- The main business of the summit will be to push ahead with the “fiscal compact”. This requires the signatories to adopt balanced-budget rules. “They are going to sign a treaty that makes Keynesianism illegal,” comments one diplomat.
- It would help if Europe were more productive. But this is the second area of concern. Having almost closed the productivity gap with America in the mid-1990s, Europe is again being left behind. This trend is most alarming in southern Europe, where productivity has actually dropped. A simple explanation is that Mediterranean countries enjoyed easy “catch-up” growth by importing technology. New growth needs the harder graft of innovation and enterprise. Southern economies with cumbersome regulation, poor administration, overreliance on tiny family businesses and an over-protected labour force are bad at this. Fixing that will be the work of a generation, not a summit.
domingo, 29 de janeiro de 2012
Expectativas sobre a crise do euro
Artigo do The Economist online sobre a esperança, ou não, de uma solução para a crise do euro: