05 Aug 2014

The Transatlantic Growth Gap

Daniel Gros

0
Download Publication

2914 Downloads

Daniel Gros argues in this commentary that the cause of the transatlantic growth gap following the recovery starting in 2010 from the global financial crisis should not be sought in excessive eurozone austerity or the excessive prudence of the European Central Bank. Rather, compared to the US, he argues that the excess debt created in the EU during the boom years has been much more difficult to work off. He acknowledges that European officials are right to promote structural reforms of EU countries’ labour and product markets, but advises that they should also focus on overhauling and accelerating bankruptcy procedures, so that losses can be recognised more quickly and over-indebted households can start afresh, rather than being shackled for years.

Daniel Gros is Director of CEPS. This Commentary was originally published by Project Syndicate, 21 July 2014 (http://www.project-syndicate.org/commentary/daniel-gros-attributes-america-s-edge-over-europe-to-its-faster-bankruptcy-procedures) and is reprinted here with the kind permission of Project Syndicate.

Related Publications

Browse through the list of related publications.

A renewed EU approach for Jobs and Skills

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Competition Policy and State Aid: Defining a sustainable path for Europe’s recovery

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Healthcare and Pharmaceuticals

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

The Digital Transition

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Strategic Value Chains

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

European Green Deal

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Basel III Finalisation

The impact on EU banks and the real economy across scenarios

Managed Expectations

EU Member States’ Views on the Conference on the Future of Europe

Digital labour platforms in the EU

Mapping and business models