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Micossi, Stefano
2 articles of this author have been cited in the European Press Review so far.
Stefano Micossi on the need for European economic reform
The EU must come up with a strategy to counter growing unemployment before the start of autumn, writes Stefano Micossi in the business paper Il Sole 24 Ore: "In Europe the problem is aggravated by the lack of flexibility in economic structures. At a time when structural change is called for, the tendency is to slow its progress and discourage investments. ... An enduring phase of stagnation endangers not only the single market, but also the euro. ... The room for more aggressive national policies to back demand is limited by the growth of the public deficit. Moreover there is a danger that such policies will take on protectionist forms that can only constrict the market, rather than helping it. Consequently a strong acceleration of investment is necessary on the European level. ... The trend of growing unemployment is looming on the horizon, even if the fall in gross domestic product has been stopped. Without a common European answer we will have to live with low growth, high unemployment and a steady rise in poverty. The European governments must instigate serious discussion about what they can jointly do to give us a better perspective."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Europe
Joint action required
The Financial Times Deutschland documents an appeal by leading European and American economists exhorting the European states to take concerted action in the current financial market crisis. "The most recent events in the US have shown that it is pointless to try saving individual banks one after another. We need a systemic response. In Europe this means that the banking sector must be re-capitalised under the leadership of the European Union. ... An end must be put to the chaos on the financial markets before the real economy is seriously damaged. The savings of hundreds of millions of Europeans are in jeopardy. If the crisis causes the loan market to dry up this will lead to the large-scale destruction of jobs and companies. ... In Europe, saving an individual bank means that either a single nation shoulders the burden even though its neighbouring states also suffer from the side effects or a last minute improvised community action plan which entails sharing the costs is implemented. Up to now this latter procedure has made sense, but European banks are too independent of each other for national efforts or sporadic coordinated schemes to suffice. Any intervention by a nation state and any joint action by a small group of countries can have unforeseen repercussions for other European nations. ... Pan-European solutions should be developed where appropriate. ... To prevent crises of these dimensions in the future it will also be necessary to regulate the financial markets and institutes at a European level."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Europe, » U.S., » Global
All available articles from » Richard Baldwin, » Alberto Alesina, » Tito Boeri, » Willem Buiter, » Francesco Giavazzi, » Daniel Gros, » Guido Tabellini, » Charles Wyplosz, » Klaus Zimmermann
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