Columbia International Affairs Online: Policy Briefs

CIAO DATE: 01/2011

A Renewed Political Deal for Sustainable Growth within the Eurozone and the EU: An Open Letter to the President of the European Council

Daniel Gros, Giuliano Amato

December 2010

Centre for European Policy Studies

Abstract

In an open letter to the President of the European Council in the run-up to the December meeting that will deliberate on new rules of economic governance, a team of expert economists from CEPS and EuropEos expresses serious doubt that the proposals under consideration are a sufficient cure for the economic plight of the European Union. They fear that they will not resolve the competitive and payment imbalances that are undermining the credibility of the budgetary consolidation programmes and the euro itself and further argue that there is an urgent need to lift the growth rate of the Union, and budgetary consolidation, as important as it is, will not suffice. This Policy Brief outlines the elements of a comprehensive economic policy initiative at the EU level capable of matching fiscal discipline with higher growth, as well as restoring a climate of cooperation between the member states.