Southern Europe is burning. This crisis has turned out to be the great catalyst exposing national ills of prevailing political and banking systems. Conventions were overthrown and political establishments dismantled; yet, Europe seems to be on hold, or in slow motion at best, waiting the German elections. In the meantime, a toxic environment is breeding, European cohesion is eroding.
Posts Tagged ‘ Economy ’
As another expected Euro crisis unraveled in Cyprus, a consecutive round of critical examinations of the common currency is required. Instead of repeating the same mantras of lost independent monetary policies or severe differences in the European economies’ business cycles, another approach is needed. Perhaps the inconvenient truth and the negative unintended consequences of the common market are the fact that with one currency, fluctuations in the European Union minimum wage are inherently creating detrimental imbalances.
The Euro-zone has entered an expected consecutive recession, which has resulted in diminishing public confidence in EMU policy-making. With negative growth prognosis in the Euro-zone, issues have been multiplied and solutions simplified. As a result such a detrimental status quo exacerbates the inconvenient truth about the common currency.
The European economy is in the midst of the deepest recession since the 1930s. Although its size and extent are exceptional, the crisis has many features in common with similar financial-stress driven recession episodes in the past. Signs of improvement have appeared recently, but recovery remains uncertain and fragile. Fortunately, the EU’s response to the downturn has been swift and decisive. At present, governments
and central banks are well aware of the need to avoid the policy mistakes that were common at the time of the Great Depression, both in the EU and elsewhere.
EST ambassador to Croatia, Henri Erti, takes a look at the EU’s next member, Croatia, and provides an overview over its current economic situation and future prospects.
Recently Prof. Joseph Stiglitz, one of the world’s most famous and popular economists presented his latest bestseller “The Price of Inequality” at an event of the German Council on Foreign Affairs. EST’s Stylia Kampani was around and presents a summary and some thoughts on its content.
While the rampant inferno of the financial crisis has been temporarily contained, Finland has recently stunned EU leaders, who have been promulgating the importance of the financial bailouts for both Greece and Spain by contemplating a Finnish exit from the eurozone. Henri Erti explains why Helsinki believes this might be wise.
While the crevice of the EU credit crisis is disseminating, the core issues, which are painfully veritable, have remained remarkably tacit. As a result, the troublesome reluctance to address the fundamental issues of the crisis has raised questions on what must be done to regain the economic growth of the EU. Henri Erti tries to give an answer.
Serbia in the EU? The scenario sounds feasible: the foundations of the EU-Serbia relationship were laid back in 1997 with the Regional Approach (when the EU Council of Ministers established political and economic conditionality for the development of bilateral relations), and now the European Council has officially granted Serbia the status of candidate country (March 2012). However, since the national elections in May, the IMF and the World Bank have been extremely critical over the new government’s move to increase parliamentary control over the National Bank of Serbia (NBS).
The World Bank recently published a report which served as a reminder of a fact that is easily forgotten these days: The European Union is a success story when it comes to economic growth and standards of living. The key to success has been regional economic integration: The European Single Market has allowed enterprises and workers to make use of business and job opportunities.