Best of the Blogs – 6 March 2012
Despite A Mundane EU Summit, Plenty of Challenges Remain In Greece
By Open Europe Blog
This post by Open Europe Blog reviews the recent EU summit’s decision to withhold part of the bailout funds for Greece. It says that the EU will only supply the part required to ensure that the voluntary Greek restructuring can proceed. This, it explains, is because of the expected level of recapitalisation for Greek banks and in order minimize the immediate capital pay-out necessary to stabilise the banks.
Europe’s growth strategy: All supply and no demand
By Centre for European Reform
This post by the Centre for European Reform looks at Europe’s growth problems of the last four years. It identifies the two ingredients European policy-makers are focusing on in their efforts and then illuminates their problems. The article then goes into more facets of the fiscal recovery, from the short-term impact of fiscal policy to the allowance of an increase in budget deficits. In concludes by arguing that Europe’s growth strategy is all supply and no demand, which risks pushing economic output in countries like Spain the way of Greece, Ireland, and Latvia as well as upsetting much-needed structural reforms.
Rachel Reeves, Jo Swinson and Richard Murphy are wrong on the 50% rate
By Centre for Policy Studies
This post by the Centre for Policy Studies argues that the debate surrounding the 50p rate is nonsense. It states that the worst-possible costs of abolishing the tax rate (which is £2.4 billion according to the Institute for Fiscal Studies) is far less compared to the proposals of the Liberal Democrats, increasing the income tax personal allowance to £10k (which would cost £9.3 billion) and the Labour Party, cutting VAT (which would cost £12.4 billion).
Foreign Language Blogs
Umweltschutz braucht Wachstum
By the Economists’ Blog
This post by the German Economists’ Blog studies the issue of emerging markets and environmental protection. It states that emerging markets will contribute twice as much to global growth than developed countries. Emerging countries cannot be blamed for wanting to achieve prosperity; the article calls not a total abandonment of growth, but for a change in products and consumption and a new culture of sustainability at work and in everyday lives to make sure future generations can grow as well.
Click here to read more (in German)