Publication

The Eurozone is in recession and will show negative growth in 2012, notes Stefano Micossi in this new CEPS Policy Brief. Hopes that fiscal consolidation could spur growth by improving household and business confidence are not materializing, because in reality, domestic demand has been hit too hard by fiscal consolidation, and investment throughout the Union remains well below pre-crisis levels. The author calls upon the European Council to consider launching a new growth initiative, centered on mobilizing vast resources at EU level for investment in worthy projects of common interest Europe-wide.