Author: Philipp Heimberger

Austerity Erodes The Governments That Impose It

Austerity packages reduce approval, drive protests, and raise the odds of a government crisis — especially in downturns.

New research reveals that EU fiscal tightening reduces output, raises unemployment, and widens income gaps — especially during recessions.

Boosting infrastructure spending would stimulate growth and employment without threatening debt sustainability.

The recently enacted EU fiscal framework aims for fiscal prudence but poses challenges for funding the green and digital transition.

EU member states submit fiscal plans, influencing economic stability and public debt for years to come.

What the European Commission proposes makes sense as far as it goes. But that is not nearly far enough.

Meeting the EU’s climate and energy goals will mean ramping up public investment via a permanent fund.

Europe’s central bank is under pressure to raise interest rates to counter rising inflation. It should resist it.

The pandemic-induced crisis has seen fiscal policy relaxed. Ill-evidenced orthodoxy must not be allowed to reinstate austerity.

Implicit in the global ‘race to the bottom’ on corporation tax in recent decades has been that this favours growth. Yet does it?