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Category Archives: Economics & Trade

The German ‘traffic light’ coalition: no commitment to stronger spending powers for the EU

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With the new ‘traffic light’ government in Germany, one could have expected a game changer in Germany’s approach to fiscal integration. Instead, the coalition agreement is a compromise between maintaining the old fiscal regulatory framework and showing some moderate opening towards new European spending powers. The coalition agreement of the new German government led by […]

Why a change in government won’t change Norway’s ambiguous EU policy

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Although the new Norwegian government appears more willing to discuss EU-related issues than previous ones, the question of Norway’s EU policy remains ambiguous, argues John Erik Fossum in this blog post.  On September 13, 2021 Norway held its parliamentary elections. In Norway, parliamentary elections take place at fixed dates, at a four-year interval. The total […]

Is Next Generation EU the great leap towards a European Fiscal Union?

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The indebted states need to spend their fresh RRF funds wisely. The frugals need to acknowledge how they benefit from the euro and single market. Then mutual trust can be built. European integration is indeed one of the most fascinating social and political experiments in modern times. Like all experiments, it developed and continues to […]

The Austerity Zombie rises from the dead

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It was naïve to believe, mid-pandemic, that austerity had been “buried” in Europe. Like a zombie, the idea has risen from the dead and still retains powerful advocates. In early June, President of the Bundestag and former German finance minister Wolfgang Schäuble published an opinion piece in the Financial Times that has attracted much mockery […]

After the pandemic: Still Draghi vs Schäuble?

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Will Berlin finally acknowledge that economics is a social science and not theology? How to escape the pandemic? For some – the Italians Mario Draghi and Paolo Gentiloni or the French Emmanuel Macron and Thierry Breton – the pandemic has called into question the previous economic policy equilibria and so they are asking for the […]

Will the Italian economy recover?

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The Next Generation EU superfoods are on their way. Can they save a starving Italian patient? Italy entered the Covid-19 crisis enfeebled by years of anaemic growth, stagnant public and private investment, high unemployment, a heavy debt load and tendentially feverish interest rates. Hopes for its recovery were pinned on the Eurozone’s standard recipe of […]

Brexit: The cold waters between Canada and Norway

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The UK’s push for the frictionless market of the Norway option, while accepting only the obligations of the Canada option, was not viable. It was a delusion, either due to ignorance or self-deception. The UK never had the same vision of the EU as the other Member States. A main reason for the UK’s accession […]

Without good governance, the EU borrowing mechanism to boost the recovery could fail

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The European Union recovery fund could greatly increase the stability of the bloc and its monetary union. But the fund needs clearer objectives, sustainable growth criteria and close monitoring so that spending achieves its goals and is free of corruption. In finalising the fund, the EU should take the time to design a strong governance […]

What can Italy’s economic ailments tell us about the euro area’s current slowdown?

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Even before the Covid-19 pandemic, the euro area slowdown was the result of EMU-induced domestic deflation. EU3D researcher Simona Piattoni offers a different reading of Italy’s disappointing economic performance.  Since 2011, Italy has been considered the single largest threat to the stability of the euro. Italy’s high and growing debt (€2300 bn, some 135% of […]

No extra time for the European Union

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The socio-economic effects of the coronavirus requires a massive and coordinated response from the EU. So far, the EU has not been up to the challenge, argues Marco Dani and Agustín José Menéndez.   The coronavirus pandemic has deepened and radicalised a set of crises that the European Union postponed but did not solve in […]

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