Note: This piece appeared as an Op-Ed in the Financial Times and was co-authored by Re-Define MD Sony Kapoor & Advisory board member Charles Goodhart
Whether or not Greece has to leave the eurozone, and whether or not a growth compact is added to the fiscal treaty, there is likely to be a further call – or calls – on the International Monetary Fund for help with funding firewalls to protect the eurozone from meltdown. The IMF should take this opportunity to be more robust than it has been in the past in dealing with Europe’s problems.
Re-Define's efforts for the Eurozone to adopt a Growth Compact are succeeding, albeit haltingly. Having first laid out such a compact to sit aside the Fiscal Compact in January when we are a lonely voice, we have now been successful in getting most EU institutions and several key leaders to come out in support of such an agreement at least in principle. This post, which frist appeared on Business Insider on Thursday the 3rd of May reminds EU policy makers about what the esstential elements of an agreement to try kickstart growth need to be.
Unless the EU signs up to a Growth Compact soon, we face social, political and economic disaster. Swift action on tax, banking and investment is the way out of the crisis.
By Re-Define Managing Director Sony Kapoor and Fabrizio Tassinari at the Danish Institute for international studies. Note: this has appeared as an op-ed in the European Voice
Ways that the EU could unleash the animal spirits of the markets to trigger self-financing green investments.
Can green growth shake Europe out of its economic stagnation? At face value, Denmark is not the most obvious candidate to answer this question. The UN climate summit that Copenhagen hosted in 2009 was supposed to herald a new era of international responsibility; instead, it has become a byword for discord between a declining West and emerging economies.
By Re-Define Managing Director Sony Kapoor and Peter Bofinger, member of the German Council of Economic Advisers. This appeared as an oped in Financial Times Deutschland, NRC Handelsblad, Politiken, The Guardian, Die Presse in the first week of February 2012.
The EU needs a growth compact, not a fiscal one. Swift action on tax and jobs is the way out of the crisis
Overspending by governments, we have been told, triggered this crisis. The cure thus lies in immediate austerity, hence last month's German-led push for a eurozone fiscal compact and the UK's pursuit of similar policies.
But, as demonstrated by the experiences of Greece, Portugal and Spain, this course leads to biting, deep recessions and worsens public indebtedness. The IMF acknowledged as much last week. A focus on growth, not austerity, is the correct answer for Europe's ills.
Sony Kapoor, Director of Re-Define & Peter Bofinger, Member of the German Council of Economic Experts
Dated the 30th of January 2012
THE CONTRACTING PARTIES………….
CONSCIOUS of the need to tackle the unprecedented social, political, economic, employment and institutional challenges confronting the Union, and
RECOGNIZING that promoting growth is the best possible way of rising up to these challenges, thus
DESIRING to kick-start growth in short-term and construct structures and implement policies that put the Union on a path of higher growth in the long-term, especially as only growth will create the economic and political space to enact the serious structural reforms the Union needs, and