In an analysis for the European Parliament, researchers of the Kiel Institute call proposals for implementing a euro area fiscal stance highly questionable, as long as this requires countries to run more pro-cyclical fiscal policies. Such a policy would destabilize the euro area at disaggregated level and induce more cyclical divergence across countries. Read the full analysis (external website)
The current asylum system is contradictory, unfair, and both costly and hazardous for all involved. Under the present rules, refugees can normally only apply for asylum in a country after they have crossed its border—often by illegal means and at great risk to their personal safety. The solution is to reform the system so that people can apply for asylum before they enter the EU.
Read Kiel Institute Focus
Business investment is likely to remain relatively weak and to stay below its pre-crisis trend. The ECB may not be able to further stimulate investment, as the effectiveness of expansionary monetary policy seems to be lower in the aftermath of a crisis than at its height. These are the results of an analysis by the Kiel Institute for the European Parliament. Read the full analysis (external website).
What is the reason behind this Brexit decision? The President of the Kiel Institute for the World Economy, Dennis J. Snower, in our video interview on the reasons behind Brexit, the need for a more socially connected Europe, and the coming EU-UK negotiations.
Mario Monti, former EU Commissioner for competition, has harshly criticized British Prime Minister David Cameron in his speech on the occasion of being awarded the Global Economy Prize 2016. To call a referendum has been a cynical decision by Cameron, only made to secure a stronger leadership within his party, he said.
In his address on occasion of awarding the Global Economy Prize 2016, Dennis Snower pleaded for more reconciliation and common understanding in Europe. No European national state were able to solve any of the presently pressing problems on its own. Rather, national solo efforts may even undermine peace and welfare.
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