Financial Times (May 24)
If Europe’s leaders fail, the euro will fail. But they mustn’t and the euro shouldn’t. During boom times, leaders could break the rules. Early on, France and Germany broke the public debt limits (less than 60% of GDP) of the Stability and Growth Pact. Today’s leaders need to establish tough rules and hold their countries accountable. Europe also needs productivity gains to grow faster. This means difficult structural reforms can no longer be put off.
If Europe’s leaders fail, the euro will fail. But they mustn’t and the euro shouldn’t. During boom times, leaders could break the rules. Early on, France and Germany broke the public debt limits (less than 60% of GDP) of the Stability and Growth Pact. Today’s leaders need to establish tough rules and hold their countries accountable. Europe also needs productivity gains to grow faster. This means difficult structural reforms can no longer be put off.
Tags: euro, Europe, Germany, Reform, Stability & Growth Pact
