How to pull the eurozone out of the mire

The eurozone economy is in serious trouble. Unemployment is stuck above 11 per cent, and growth and inflation have undershot expectations for the umpteenth time. European leaders were supposed to hold a jobsand growth summit on October 7th 2014. They have had to shelve it: the only thing on the agenda was the ‘Youth Guarantee’, a small programme to get young people into work. The summit’s postponement reflects the growing divide over how to turn around the European economy, whose dire state is threatening the EU’s political future. At this juncture, a radical, five-pronged strategy is required to pull the eurozone out of its slump. Higher public investment, temporary income tax cuts, tax reform, structural reforms aimed at boosting competition in product markets and more aggressive monetary policy all have to come together to bring about recovery.

• Primary Source

ESO: Background information: Stronger policy response needed to avoid risks to growth, especially in the euro area, says OECD in latest Economic Outlook http://www.europeansources.info/record/stronger-policy-response-needed-to-avoid-risks-to-growth-especially-in-the-euro-area-says-oecd-in-latest-economic-outlook/

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