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Europe's Economy: Calm Before the Storm?
Prof. Xavier Vives on why growth is essential
February 7, 2012
The Euro Zone is currently experiencing a moment of relative stability, due to a massive liquidity injection from the European Central Bank, and another one on the horizon. But it may be the calm before the storm, says IESE Prof. Xavier Vives, since Europe still faces the challenge of boosting growth, and without growth, the region cannot become more competitive and deficit problems will remain.
While Europe has taken significant strides in getting its financial house in order - particularly through the new fiscal compact - only growth will end today's "vicious cycle," he says. What is needed is a comprehensive package of reforms aimed at keeping Europe's economy growing in the long run.
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