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www.fh-joanneum.at
MANAGEMENT
The case for the euro
EMU will evolve (US monetary
union also did so)
Political commitment of leaders
to defend the euro
Governance of euro area will be
strengthened
More sustainable public finances
will help countries
Leaving the euro would involve
huge costs, make it harder for
countries to borrow
“If you didn’t have that common currency in
Europe, they would have bigger problems
than they have now.”
Paul Volcker, former Federal Reserve
Chairman
www.fh-joanneum.at
MANAGEMENT
Confronting the crisis
Several euro area countries confronted by need to:
•
adopt drastic austerity measures
•
accelerate reforms
But measures are unpopular (strikes, protests)
Stimulus vs. austerity debate:
•
should governments use fiscal stimulus to support
economy?
•
or cut back deficits and bring down the debt level?
www.fh-joanneum.at
MANAGEMENT
Completing the Economic and Monetary Union
Bring down debt and
deficit levels
Make more effective fiscal rules
Increase competition
Complete the Single Market
Boost growth: ‘Europe
2020’ strategy
www.fh-joanneum.at
MANAGEMENT
Europe 2020: smart, sustainable, balanced growth
•
Economic reform program developed
at EU level
•
Each country adopts own measures
•
Aims to spur more knowledge-
intensive, innovation-based growth
•
Raise employment rate to 75%
•
R&D spending should be 3%
•
Prepare for longer-term challenges:
aging, globalization
•
An agenda for growth and jobs
www.fh-joanneum.at
MANAGEMENT
The crisis and the challenges