While support schemes during the pandemic were not targeted at protecting ‘good’ firms, financial support mostly went to those with the capacity to survive and succeed. Labour schemes have been effective in protecting employment.
In its proposed Recovery Fund, the European Commission uses allocation criteria mainly linked to infection rates and past economic performance. To foster an efficient economic rebound post COVID-19 crisis, we propose instead to allocate funds through a forward-looking approach based on specific industrial and economic structure of EU regions.
Europe needs to know how it can realise the potential for industrial rejuvenation. How well are European firms responding to the new opportunities for growth, and in which global value chains are they developing these new activities? The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing in Europe’s growth agenda.
Micro-economic features of economic systems can have a major impact on national performance. Policymakers should therefore reconfigure their scoreboards to reflect the roles played in a country’s economic growth by large internationalized firms, global value chains or resource reallocation.
This new Bruegel Blueprint provides a differentiated understanding of growth, productivity and competitiveness and the important role public policy needs to play.
Is the ‘Global Trade Slowdown’ a signal that globalisation has structurally 'peaked', and thus we should expect a stagnation of trade growth also in the future? Or is the slowdown just the result of cyclical drivers, e.g. the fragile European recovery and slower growth in China?
Carlo Altomonte and Tommaso Aquilante highlight some clear ‘dos’ and ‘don’ts’ when looking at the fiscal/structural side of a growth-friendly policy mix for the euro area.
Memos to the new EU leadership.