Policy Brief
05/08/2015
This Policy Brief tries to envisage a different Europe. It is the second in a series of three in which future macroeconomic scenarios for Europe are analysed using projections generated by the Cambridge-Alphametrics Model (CAM). This Policy Brief explores a scenario in which austerity is reversed and Eurozone countries experience a period of sustained capital investment. An increase in the European Federal Budget allows fiscal flows to offset the imbalances that inevitably occur within a heterogeneous monetary union. Under such a scenario, model simulations project sustained growth and containment of debt-to-GDP ratios.
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“It’s a mistake to think we can go back to the old normal after Trump”. Interview with FEPS Secretary General László Andor in Telex (HU), where he discusses the global trade tensions triggered by Trump-era tariffs, the shifting US-China dynamic, and the need for the EU to develop a new strategic approach in a permanently changed world order.
In an article in Delo, László Andor criticises Viktor Orbán government's economic policies, such as not allowing Hungary to join the euro area, which he believes would have helped curb inflation. He also criticises the government for blaming external enemies such as the President of the European Commission, to cover up its own failures.