ROME: Six weeks into the Euro's life, Europe's economic policies are out of whack. Europe has high public debts, taxes near 50% of national product, and years of high unemployment and mediocre growth. So what's the response? A tilt toward monetary rigidity and an expansive fiscal policy through a creeping abandonment of the EU Stability Pact. In addition, proposed employment strategies will do little to reduce labor market rigidity.
ROME: Six weeks into the Euro's life, Europe's economic policies are out of whack. Europe has high public debts, taxes near 50% of national product, and years of high unemployment and mediocre growth. So what's the response? A tilt toward monetary rigidity and an expansive fiscal policy through a creeping abandonment of the EU Stability Pact. In addition, proposed employment strategies will do little to reduce labor market rigidity.