GROWTH SLOWDOWN ENDANGERS THE ECONOMIC COHESION OF THE EUROPEAN UNION
It is argued that European integration has not fulfilled its chief economic promises. According to official documents and in compliance with post-Keynesian economic interpretation of major long-term trends characterizing the Euro area, the output growth has been increasingly weak and unstable. Produ...
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| Format: | Article |
| Language: | English |
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Bielsko-Biała School of Finance and Law
2016-06-01
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| Series: | Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej |
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| Online Access: | http://asej.eu/gicid/01.3001.0012.2981 |
| Summary: | It is argued that European integration has not fulfilled its chief economic
promises. According to official documents and in compliance with post-Keynesian
economic interpretation of major long-term trends characterizing the Euro area, the
output growth has been increasingly weak and unstable. Productivity growth has been
following a decreasing trend. Income inequalities, both within and between the EU
Member States, have been rising. This sorry state of affairs is likely to continue – and
likely to precipitate further exits, or eventually, the dissolution of the Union. However,
this outcome is not unavoidable. A better integration in the EU is possible, at least in
theory. Also the negative consequences implicit in the existence of the common currency
could be neutralised. However, the basic paradigms of the economic policies to be
followed in the EU would have to be radically changed. First, it follows from
considerations presented that the unconditional fiscal consolidation provisions still in
force would have to be repelled. Second, ‘beggar-thy-neighbour’ (or mercantilist) wage
policies would have to be ‘outlawed’.
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| ISSN: | 2543-9103 2543-411X |