Europe’s Growth Emergency

Zsolt Darvas and Jean Pisani-Ferry address this topic in this new Bruegel Policy Contribution, which is available here.

3 thoughts on “Europe’s Growth Emergency”

  1. I note the authors buy the story of a plunge in Irish unit labour costs – courtesy of American pharmaceutical companies producing a rising number of batches with a flat head count.

    It’s automatic to think of more education and research as being positive even though there is some evidence that leaving college saddled with debt is not an ideal basis for entrepreneurship. Besides, after a certain level, finishing university hasn’t been an impediment for some successful entrepreneurs.

    In an age of global markets, consumer electronics is in the control of US and Asian companies. SAP of Germany is the only significant software company while the UK’s Autonomy is being acquired by HP.

    In the age of globalization, competitiveness is very important as is a culture that supports young entrepreneurs.

    The social snobbery of directing the brightest towards medicine and law, has a cost.

  2. @Philip Lane

    Thanks for posting links like these. It’s nice to keep abreast of what these guys are saying even if (as in this case) they do seem to have a very odd view of things. A discussion of EU growth with only a passing mention of the ECB is a bit like Hamlet with just a glimpse of the Prince.

    I suspect that the demarcation lines within the economics profession give rise to this sort of thing. Monetary policy isn’t supposed to have any medium-term impact on growth, therefore it doesn’t get discussed. Or am I being too cynical?

  3. @MH: “The social snobbery of directing the brightest towards medicine and law, has a cost.”

    Funny (in an ironic manner) that you should mention this. This mismatch was flagged back in mid-80s (Shelia Tobias).

    Most of the ‘high flyers’ might make a good fist of an engineering course, but would they be engineers – (like getting grime under your fingernails and having to scrup-up with Gumption instead of Anti-whatever gel) or use BluTack to keep the wig in situ?

    My experience with engineers was that they were sharp, quirky and very inquisitive. Apart from one outlier, they knew how to wield a screwdriver and spanner.

    Brian Snr.

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