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The European Green Deal after Corona Implications for EU climate policy
Research Paper

Breaking the Reform Deadlock, 6th Annual Report of the CEPS Macroeconomic Policy Group

by Thomas Mayer / Angel Ubide / Daniel Gros / Roberto Perotti
01 July 2004

Breaking the Reform Deadlock, 6th Annual Report of the CEPS Macroeconomic Policy Group

Thomas Mayer / Angel Ubide / Daniel Gros / Roberto Perotti

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Euroland is now in its fourth year of unsatisfactory growth. What are the reasons for this and what can be done about it? This report arrives at the following conclusions:
1. Demographic change is already now reducing the growth potential and squeezing government finances.
2. Insufficient investment is the main driver of the productivity slowdown that has weakened growth.
3. To stimulate investment, better coordination among fiscal, structural and monetary policy is needed: Ideally a combination of structural reform, fiscal consolidation and low interest rates. The ECB – as the only widely respected economic policy-making institution in the EU with room for manoeuvre – should become more proactive in pursuing economic policy coordination in order to obtain more progress on structural reform and fiscal consolidation.
4. To foster a more balanced expansion of the world economy and reduce the risk of brutal exchange rate movements, greater cooperation among the central banks of the US, the EU, Japan and China is needed, giving rise to a G4.


About the Authors


  • Author
    Thomas Mayer
    Thomas Mayer
  • Author
    Angel Ubide
    Angel Ubide
  • Author
    Daniel Gros Daniel Gros
    Daniel Gros
  • Author
    Roberto Perotti
    Roberto Perotti
Breaking the Reform Deadlock, 6th Annual Report of the CEPS Macroeconomic Policy Group
Download Publication

2086 Downloads