Global growth is weakening: coordinating on fiscal and structural policies can revive euro area growth

by Laurence Boone, OECD Chief Economist The global expansion is continuing to lose steam, and faster than anticipated a few months ago. Growth in Europe has been particularly disappointing, as trade growth both within the EU and with external partners has stalled. Business and consumer confidence has plummeted in advanced economies as trade tensions persist, … More Global growth is weakening: coordinating on fiscal and structural policies can revive euro area growth

La Croissance est à son pic, la négociation d’un atterrissage en douceur s’annonce délicate

‌Laurence Boone, Chef économiste de l’OCDE L’économie mondiale traverse des zones de turbulences. La croissance du PIB mondial est élevée, mais a probablement atteint son pic. Dans de nombreux pays, le chômage est bien en dessous de ses niveaux d’avant-crise, les tensions sur l’emploi augmentent et l’inflation demeure modérée. Mais les échanges et l’investissement marquent … More La Croissance est à son pic, la négociation d’un atterrissage en douceur s’annonce délicate

Growth has peaked: Challenges in engineering a soft landing

by Laurence Boone, OECD Chief Economist The global economy is navigating rough seas. Global GDP growth is strong but has peaked. In many countries unemployment is well below pre-crisis levels, labour shortages are biting and inflation remains tepid. Yet, global trade and investment have been slowing on the back of increases in bilateral tariffs while … More Growth has peaked: Challenges in engineering a soft landing

A sustainable European currency needs a common fiscal stabilisation instrument

Jan Stráský and Guillaume Claveres, OECD Economics Department, Euro Area/EU desk The euro area sovereign debt crisis has exposed important flaws in the design of the Economic and Monetary Union, especially when it comes to dealing with macroeconomic shocks. Compared to federal states, fiscal transfers at the euro area and EU level are virtually non-existent. … More A sustainable European currency needs a common fiscal stabilisation instrument

European banking union in its final leg

by Jan Stráský and Guillaume Claveres, OECD Economics Department,  Euro Area/European Union desk After years of crisis, we are now experiencing an economic expansion in Europe. But further crises are certain to come, sooner or later, and improvements in the euro area’s resilience to economic shocks will require further policy changes. Notably, it is important … More European banking union in its final leg

Solving Non-Performing Loans in Europe to speed up the recovery

by Pierre Beynet, Head of Division, Country Studies Branch, OECD Economics Department Almost 10 years after the outset of the financial crisis in summer 2008, European growth remains modest, constantly underperforming the OECD average. Several factors explain this disappointing performance. The pace of fiscal consolidation was rapid in the countries most affected by the crisis … More Solving Non-Performing Loans in Europe to speed up the recovery

Structural reforms to revive growth in Europe: necessary but not sufficient

By Aida Caldera Sánchez, European Union Desk, and Nicolas Ruiz, Structural Surveillance Division, OECD Economics Department After many years characterised by output losses or quasi-stagnation, steadier growth appears to be setting in across European economies. Recent data point to an upturn in growth, the euro-area unemployment rate has finally fallen below 10%, and private-sector confidence … More Structural reforms to revive growth in Europe: necessary but not sufficient

Labour mobility in the European Union: a need for more recognition of foreign qualifications

by Jan Stráský, Economist, OECD Economics Department Labour market mobility in the European Union is increasing (Figure 1), but it remains too low to provide sufficient adjustment in the face of diverging labour market developments. This situation reflects non-policy factors, such as linguistic and cultural differences, but also policy barriers. In particular, difficulties in the … More Labour mobility in the European Union: a need for more recognition of foreign qualifications

Global growth warning: weak trade, financial distortions

By Catherine L. Mann, OECD Chief Economist The global economy remains in a low-growth trap. In our latest Interim Economic Outlook global GDP growth is set to remain flat around 3% in 2016 and improve modestly to 3.2% in 2017. This is slightly lower than the June Economic Outlook forecast due to weaker conditions in advanced economies, … More Global growth warning: weak trade, financial distortions

Fiscal policy in the euro area: in the current juncture, don’t apply sanctions

  By Alvaro Pina, Head of European Union and Euro Area Desk, Country Studies Branch, OECD Economics Department Tomorrow the European Commission will assess again the fiscal situation of Portugal and Spain, and decide whether to recommend to the Council that the Excessive Deficit Procedure be stepped up for those countries, exposing them to various … More Fiscal policy in the euro area: in the current juncture, don’t apply sanctions