FEPS and TASC are organising an annual conference on June 14th 2013 on alternative economic policies for reconstructing the European Economy.
The European economy remains in crisis. Unemployment in the Euro zone has reached a record high of 12 per cent. Almost one third of Euro zone member states have already been forced into official bail out programmes, while other member states’economies remain enfeebled. The financial sector remains dysfunctional and the Euro zone itself is characterised by structural competitiveness imbalances andwidely diverging economic prospects. The economic crisis is a systemic crisis that requires systematic solutions. The official response to the crisis has been insufficient and often incoherent. The current responses have been preventive and reactive rather than building the institutional and economic foundations of a system that would put European on a different developmental trajectory where job creation and equitable growth takes centre stage.
A Europe facing the prospect of stagnation and high unemployment needs innovation and reindustrialisation from modern evidence based industrial policy together with alternative macroeconomic policies. Likewise, the institutions of the Euro zone proved to be inadequate to deal with the scale of the catastrophe in Europe’ financial institutions, and inadequate to prevent the explosion of public and private debt. Fundamental changes to ECB and Euro zone rules may be required if the currency is to assist job growth and a strong European economy in future.
Design flaws must be rectified.The quality of the economic policy debate must be strengthened at national and European level. Reconstructing the European economy will need evidence based policy making and a willingness to challenge the status quo and prevailing conventions. The annual TASC – FEPS conference is an opportunity to hear progressive, evidence based ideas on how sustainable economic recovery can be achieved in the European and Irish economies.
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