EU must redouble efforts to restore fiscal responsibility and break up the euro zone
15 November 2012
SUGGESTED
Labour Market
Energy and Environment
Proposals to fund reducing fuel duty, to the point that it can be halved and then eventually phased out.
16 November 2012
Economic Theory
25 June 2024
Preparations must be made for the orderly exit of a number of countries from the euro zone
Commenting on the news that the euro zone has fallen back into recession, Prof Philip Booth, Editorial Director of the Institute of Economic Affairs, said:
“Today’s news that the euro zone is in recession will be met by a chorus of voices suggesting that the most highly indebted governments must spend and borrow more. This is entirely the wrong response and also ignores the most important policy options.
“Firstly, the euro is flawed as a currency area. Preparations must be made for the orderly exit of a number of countries.
“In addition, the EU has long-term structural problems which must be addressed. Only 20% of 60-64 year olds work in most southern EU countries. This is a symptom of the high government spending, taxes and regulation that are at the root of the EU’s problems. Growth will not return unless there is radical structural reform.”
Notes to editors
To arrange an interview with an IEA spokesperson, please contact Stephanie Lis, Director of Communications: 020 7799 8909, slis@iea.org.uk
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
“Today’s news that the euro zone is in recession will be met by a chorus of voices suggesting that the most highly indebted governments must spend and borrow more. This is entirely the wrong response and also ignores the most important policy options.
“Firstly, the euro is flawed as a currency area. Preparations must be made for the orderly exit of a number of countries.
“In addition, the EU has long-term structural problems which must be addressed. Only 20% of 60-64 year olds work in most southern EU countries. This is a symptom of the high government spending, taxes and regulation that are at the root of the EU’s problems. Growth will not return unless there is radical structural reform.”
Notes to editors
To arrange an interview with an IEA spokesperson, please contact Stephanie Lis, Director of Communications: 020 7799 8909, slis@iea.org.uk
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
SHARE
