FEPS Fresh Thinking

Archives for austerity

Yesterday’s decision of the European Central Bank to cut its key interest rate below zero and the other measures announced are more than a European way of the U.S. Quantitative Easing (QE). The ECB cut its main refinancing rate to 0,15% and its deposit rate from zero to minus 0,1%. The European Central bank is… » read more

Posted by Ernst Stetter

In a conference organised by Policy Network in London this week, Lord Tony Giddens argued, in a session I had the honour to chair, that the problems we are facing at the moment are not just European but also global. The key question facing Europe, as well as the US, China, India and Africa, is… » read more

Posted by Ernst Stetter

The election of François Hollande in France and the outcome of the Greek elections are evident examples of the growing anti-austerity reaction in Europe. And France and Greece are not the only examples. The Dutch Government had to resign recently after the populist right-wing party removed its support to a proposed austerity package, which included… » read more

Posted by Ernst Stetter

Keynes teaches us that we should not slow down growth in periods of already sluggish growth! Last year ended with an EU Summit and 2012 started as 2011 ended. At the beginning of January Merkel and Sarkozy met in Berlin and at the end of the month we will again have another summit. It seems… » read more

Posted by Ernst Stetter

Those who have seen the recent movie Contagion are aware how terrible this is when necessary precautions have not been taken in time. Let us be clear, the “crisis-beast”, or the financial markets have already been very successful in their contagion strategy. We have seen last week that two democratically elected Euro-zone governments, Greece and… » read more

Posted by Ernst Stetter

Newspapers all over Europe, political observers and politicians are gloomy of late. For example Le Monde’s headline tells us that Greece has another 10 days to avoid the worst. The Financial Times published in a post by Gideon Rachman that a political union cannot fix the Euro! Frankfurter Allgemeine Zeitung argues that the German taxpayer… » read more

Posted by Ernst Stetter