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Relative to the US, productivity growth and investment in R&D in lagging in the EU, where it is more difficult to finance and scale up promising, innovative startups. Many of the most successful EU startups move elsewhere for financing, causing the EU to lose out on both the direct growth benefits and positive spillovers from these innovative firms. The EU could nurture innovative startups by accelerating the development of its venture capital (VC) ecosystem. Reducing regulatory frictions, especially ones that deter pensions funds and insurers from investing in VC, combined with well-designed tax incentives for R&D investments could help accelerate the development of the VC sector. These and other key CMU initiatives, such as the consolidation of stock markets and reforming and harmonizing insolvency regimes, will take time. Given the urgency to boost innovation, giving public financial institutions like the European Investment Fund a more active and expanded role in kickstarting VC markets where needed and in familiarizing investors with the VC asset class can be a helpful interim step.
Europe’s economy is recovering, benefiting from a strong crises’ response. Yet, the recovery is falling short of its full potential. Uncertainty about persistent core inflation, policy directions, and geopolitical conflicts is dampening the near-term outlook. In the longer term, perennially weak productivity growth—a result of limited scale and business dynamism–-amid new headwinds from fragmentation and climate change are holding back growth potential. Steady macro policies are needed to navigate an uncertain environment. This requires transitioning to a neutral monetary policy stance and reducing fiscal deficits without jeopardizing the recovery. Policymakers also need to tackle barriers to higher potential growth. A larger and more integrated single market for goods, services, and capital will incentivize investment, innovation, and generate scale benefits. Deepening European integration will also strengthen economic resilience by insulating businesses and labor markets from global fragmentation pressures. These are formidable policy challenges, but now is the time to bring Europe to its full potential.
The latest World Economic Outlook reports stable but underwhelming global growth, with the balance of risks tilted to the downside. As monetary policy is eased amid continued disinflation, shifting gears is needed to ensure that fiscal policy is on a sustainable path and to rebuild fiscal buffers. Understanding the role of monetary policy in recent global disinflation, and the factors that influence the social acceptability of structural reforms, will be key to promoting stable and more rapid growth in the future.
The euro area economy is growing robustly, and GDP growth is projected to remain strong in 2018 and 2019. These improved economic conditions should facilitate further reforms needed to enhance euro area resilience to downturns and ensure its long-term sustainability. Rapid resolution of ...
Luxembourg is one of the most prosperous economies in the OECD. However, prosperity and quality of life cannot be taken for granted. This Survey focuses on three main challenges. The first concerns housing: strong population growth and supply constraints have made prices surge, which worsens affordability and creates vulnerabilities for some households and some banks.
Ce livre offre un voyage ludique dans le monde économique, de ses grandes théories simplifiées à l’actualité concrète des crises récentes ou des cryptos. Devinez au passage si ses deux auteurs, passionnés de pédagogie, sont de stricts « faucons » ou d’accommodantes « colombes » en termes de conduite monétaire : Anthony Benhamou, économiste, maître de conférences à Sciences-Po Paris et Président d’Agir pour l’Education Economique des Enfants ; Marc-Olivier Strauss-Kahn, enseignant, Directeur général honoraire de la Banque de France, ayant travaillé dans plusieurs organisations internationales. Extraits de la Préface de Christine Lagarde, Présidente de la Banque...
Le Luxembourg est l’une des économies les plus prospères de l’OCDE. Toutefois, la prospérité et la qualité de la vie ne peuvent y être tenus pour acquis. La présente Étude est consacrée en priorité à trois grands défis auxquels le pays est confronté. Le premier concerne le logement : la forte hausse de la population conjuguée à des contraintes du côté de l’offre ont provoqué une augmentation considérable des prix, qui nuit à l’accessibilité et qui est source de vulnérabilités pour certains ménages et certaines banques.
L’économie de la zone euro connaît une croissance solide, et la hausse du PIB devrait rester forte en 2018 comme en 2019. Cette amélioration de la situation économique devrait faciliter la mise en œuvre de nouvelles réformes pour améliorer la résilience de la zone euro face à d’éventuelles crises et garantir sa viabilité à long terme. Une ...
This book provides a much-needed detailed analysis of the evolution of Europe over the last decade, as well as a discussion about the path of reform that has been trodden in the aftermath of the financial crisis. It offers a multidisciplinary view of the E(M)U and captures the main factors that induced the reform of the monetary union – a process that has not been linear and is far from being concluded. The author examines the policy responses designed throughout the development of the crisis and assesses the scale of the crisis in Europe, in comparison to other parts of the world, as well as its prolonged effects both in economic and financial terms. An update on the current ‘state of t...
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