Cri­sis res­o­lu­tion

Enterprise - - Economy -

It is im­por­tant that state aid for fi­nan­cial in­sti­tu­tions or other se­verely af­fected in­dus­tries does not per­sist longer than it is nec­es­sary for com­pe­ti­tion and the func­tion­ing of the EU Sin­gle Mar­ket. A frame­work ex­ists in the form of the Sta­bil­ity and Growth Pact which was de­signed to tackle spillover risks from the out­set to re­tain fis­cal sta­bil­ity. The ra­tio­nales for the co­or­di­na­tion of struc­tural poli­cies have been spelled out in the Lis­bon Strat­egy and ap­ply also to ex­its from tem­po­rary in­ter­ven­tion in prod­uct and labour mar­kets in the face of a cri­sis. Within the euro area, the ad­just­ment of ex­ces­sive cur­rent ac­count im­bal­ances should be fa­cil­i­tated by both struc­tural re­forms and macroe­co­nomic poli­cies. For in­stance, sur­plus coun­tries should im­ple­ment mea­sures con­ducive to stronger de­mand while deficit coun­tries should be urged not to re­sist the un­wind­ing of their con­struc­tion slumps.

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