Economic growth challenges and responses
Economic growth challenges and responses
Context
The global economy continues to recover from the pandemic, Russia’s invasion of Ukraine and the cost-of-living crisis. Despite war-disrupted energy and food markets and monetary tightening to combat decades-high inflation, economic activity has slowed but not stalled. Even so, growth remains slow and uneven, with widening divergences and inflation, which was already an issue before the war in Ukraine, remains a central concern in OECD countries.
This succession of crises hit the European Union harder than its competitors. Since 2020, existing economic and fiscal heterogeneities across EU Member States have been exacerbated and the debt burden in some Member States, which was already concerning before the Covid crisis, is increasing.
Europe has entered a period of persistent inflation with slow growth although unemployment remains relatively low. Inflation has started to decline but is too high, above the 2% target. Labour productivity is stagnating, or even declining in the main countries of the euro zone notably due to the cyclical downturn, lack of productive investment and insufficient innovation. Growth prospects in Europe for 2023 and 2024 are weak.
Consequently, the EU and the eurozone have to embark on the right course: fighting inflation, having more fiscal responsibility, more equity financing and more supply reforms geared to increase productivity, as well as taking steps to complete the Banking Union and implement the Capital Market Union. But this move can only be contemplated if sufficient discipline starts reversing the trend of ever-growing economic heterogeneities across Member States.
Ultimately, the paradox of the Euro is that a single currency and national economic policies coexist without a strong cement of coordination. Ultra-accommodating and asymmetric monetary policy have been used to overcome the contradictions of this paradox, but the price of this permanent rescue is costly. It is essential to ensure convergence of fiscal and structural policies.
Eurofi documents
Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)
Eurofi policy notes
Is Next Generation EU a game changer? A Comparison with IRA and ways to respond - February 2024
For a more dynamic economy in the Eurozone - April 2023
Is the EU response to the Covid-19 economic crisis fit for purpose? - April 2021
What is the right macro-policy mix for a sustainable economic recovery? - April 2021
Debt and money illusion - September 2020
Panel discussion summaries
Addressing Europe’s investment needs - Budapest Financial Forum - September 2024 new
EU economic competitiveness challenges - Budapest Financial Forum - September 2024 new
Exchange of views: Conversation with Philipp Lotter - Ghent High Level Seminar - February 2024
Exchange of views: Conversation with Jean Lemierre - Ghent High Level Seminar - February 2024
Improving the EU’s global economic competitiveness - Ghent High Level Seminar - February 2024
Priorities for the next Commission - Santiago de Compostela Financial Forum - September 2023
Fostering investment in the green transition - Stockholm High Level Seminar - April 2023
Stagflation in Europe: challenges and way forward - Stockholm High Level Seminar - April 2023
Russia-Ukraine War: inflation and growth impacts - Prague Financial Forum - September 2022
Priorities for fostering investment in the EU - Lisbon Virtual Seminar - April 2021
Eurofi Views Magazine chapters
The EMU: what priority for the next five years? - September 2024 new
JACQUES DE LAROSIÈRE - Honorary President – EUROFI
Staying competitive in a changing world: building a Europe fit for the future - September 2024 new
VALDIS DOMBROVSKIS - Executive Vice-President for an Economy that Works for People, with responsibility for Trade – European Commission
Time to rethink economic policies - September 2024 new
GYÖRGY MATOLCSY - Governor – The Central Bank of Hungary
Competitiveness always grows out of cooperation - September 2024 new
MIHÁLY VARGA - Minister of Finance, Hungary
EU economic competitiveness challenges - September 2024 new
Addressing Europe’s investment needs - September 2024 new
Valdis Dombrovskis - Executive Vice-President for an Economy that Works for People, with responsibility for Trade, European Commission
Gala Dinner Keynote Speech - September 2024 new
Marton Nagy - Minister for National Economy, Hungary
Opening Remarks - September 2024 new
Mihály Varga - Minister of Finance, Hungary
Improving EU’s global economic competitiveness - February 2024
Rolf Strauch - European Stability Mechanism (ESM) | Alfred Kammer - International Monetary Fund (IMF) | Tibor Tóth - Ministry of Finance, Hungary | Declan Costello - European Commission | Mario Nava - European Commission | Fernando Vicario - Bank of America Europe DAC | José Antonio Álvarez - Santander | Anna Dunn - JP Morgan | Pierre Palmieri - Société Générale
Fostering long term productive investment - February 2024
Mario Nava - European Commission | Harald Waiglein - Federal Ministry of Finance, Austria | Gerassimos Thomas - European Commission | Markus Ferber - European Parliament | Maria Teresa Fàbregas - European Commission | Cyril Roux - Groupama | Roland Chai - Nasdaq | Jean-Jacques Bonnaud - EUROFI
Priorities for the incoming Commission - September 2023
Markus Ferber - European Parliament | Marek Belka - European Parliament | Ondřej Kovařík - European Parliament | Paul Tang - European Parliament
Fighting inflation and addressing low growth - September 2023
Rolf Strauch - European Stability Mechanism (ESM) | Mario Nava - European Commission | Reinhard Felke - European Commission | Tibor Tóth - Ministry of Finance, Hungary | Carmine Di Noia - Organisation for Economic Co-operation and Development (OECD) | Didier Borowski - Head of Macro Policy Research - Amundi
Investing in Europe’s growth: from crisis reaction to building future prosperity - April 2023
Valdis Dombrovskis - European Commission
Stagflation in Europe: way forward - April 2023
Axel A. Weber - Center for Financial Studies (CFS) | Alfred Kammer - International Monetary Fund (IMF) | Declan Costello - European Commission | Michala Marcussen - Société Générale | Dino kos - Special Advisor to the Chief Executive Officer, CLS
The Swedish Presidency’s priorities for a more competitive and financially resilient EU - April 2023
Elisabeth Svantesson - Minister for Finance, Sweden
Europe’s economy: building back strength, moving forward for the future - February 2022
V. Dombrovskis - Executive Vice President, European Commission
The challenge of the public and private investment in the EU - February 2022
I. Tinagli - Chair of the Committee on Economic and Monetary Affairs - European Parliament
Post-Covid priorities - February 2022
Villeroy de Galhau - Banque de France | Nadia Calviño - Ministry for Economy and Digitalization, Spain | Klaas Knot - De Nederlandsche Bank & Financial Stability Board | Mário Centeno - Banco de Portugal | Vitorio Grilli - J.P. Morgan | Luigi Federico Signorini - Banca d’Italia
Relaunching productive investment in the EU - February 2022
Werner Hoyer - European Investment Bank | Odile Renaud-Basso - European Bank for Reconstruction and Development | Harald Waiglein - Federal Ministry of Finance, Austria | Philippe Heim - La Banque Postale | Alfred Kammer - International Monetary Fund
Views on the responses to the Covid-19 crisis - April 2021
J. de Larosière - Former President, Eurofi
Post-Covid economic and financial priorities - April 2021
Klaus Regling - European Stability Mechanism | Andrej Sircelj - Ministry of Finance, Slovenia | Werner Hoyer - European Investment Bank | Pablo Hernández de Cos - Banco de España
Fostering more investment in the EU - April 2021
Markus Ferber - European Parliament | Declan Costello - European Commission | Boris Vujčić - Croatian National Bank | Mārtiņš Kazāks - Bank of Latvia | Pierre Heilbronn - European Bank for Reconstruction and Development | Laurent Zylberberg - Caisse des Dépôts | Sylvain Broyer - S&P Global Ratings Europe Ltd. | Cyril Roux - Groupama
Together for Europe’s recovery - September 2020
O. Scholz - Federal Minister of Finance and Vice Chancellor, Germany