Current Size: 68%
The main reason for stagnation is poor macroeconomic policy: the eurozone needs fiscal and monetary stimulus, but the politics of the currency union preclude this.
The EU’s decision to get tougher on Israel’s settlements can damage beneficial co-operation. Steps can be taken in order to manage these tensions.
The French are gloomy about their relationship with the Germans and the chances of economic growth. But they are working on new ideas for eurozone governance.
The reforms to the benefits system proposed by Cameron will be difficult to negotiate and may require treaty change. Reforms should not lead to a Brexit.
The ECB should stop waiting for German approval of more aggressive monetary policy, and Germany should back the ECB more openly.
A eurozone-wide public investment stimulus is neither impossible nor mad, but should be part of a strategy to pull the economy off the rocks.
Hungary under Viktor Orban is backsliding on democratic values. Member-states need to look for ways to bring Orban back into liberal European mainstream.
Quantitative easing alone will do little to boost the eurozone economy. The ECB needs to shift expectations and this requires a different approach to monetary policy.