December 2003

December 2003

-------------------------

Germany - the sick man of Europe?
by Katinka Barysch, December 2003

Germany was once the economic motor of Europe. Its large domestic market offered business opportunities for its smaller neighbours. Its high-quality machines powered manufacturing all across Europe. Its sound budget policies set the standard for the other EU countries. In the 1980s, however, the German motor began to sputter. It has since come to a standstill. In the second half of the 1990s, German GDP grew by a paltry 1.6 per cent a year, a full percentage point less than the other EU countries.

-------------------------

The EU and Iran: How to make conditional engagement work
by Steven Everts, December 2003

Under heavy international pressure, Iran agreed in mid-December 2003 to accept highly intrusive inspections of all its nuclear installations. This decision came after the board of the IAEA, the UN's nuclear watchdog, had agreed at the end of November to a resolution that strongly criticised Iran for its clandestine nuclear activities. That resolution had held back from sending the issue to the UN Security Council. It gave Iran one more chance to prove its innocence and co-operate fully with the IAEA.

-------------------------

A pact for stability and growth
by Katinka Barysch, October 2003

The stability and growth pact – the EU's fiscal rule book – is in tatters. The eurozone's largest countries, Germany and France, are in breach of the pact, having exceeded the 3 per cent of GDP limit for budget deficits in 2002 and 2003. They are likely to do so again in 2004, possibly alongside Portugal and Italy. The council of EU finance ministers (Ecofin) has launched 'excessive deficit procedures' against Germany, France and Portugal, and they could eventually incur fines of up to 0.5 per cent of their GDP.

-------------------------

The CER guide to the draft EU constitution
CER, October 2003

For the fourth time in little more than a decade, the EU is trying to overhaul its institutions and policies. The EU's previous attempts, which culminated in the treaties of Maastricht in 1992, Amsterdam in 1997 and Nice in 2000, were less than fully successful. Citizens still perceive the EU as overly complex and bureaucratic. Decision-making procedures are too complicated, and policies are often ineffective. With ten new members set to join the Union in May 2004, the imperative for reform has become overwhelming.

-------------------------

Does enlargement matter for the EU economy?
by Katinka Barysch, March 2003

The forthcoming enlargement round is the EU's biggest ever: ten new members – eight Central and Eastern European countries plus Malta and Cyprus – are set to join the Union in May 2004. In terms of economics, however, their accession will be of little consequence for most current EU members. First, economic integration between the EU and the East European countries has already progressed to a degree that makes further big gains – and losses – unlikely.

-------------------------

The euro and prices
by Katinka Barysch, February 2003

By most measures, the euro's first year been a success. Doomsayers had predicted that the currency changeover would cause mayhem on European highstreets, long queues in front of cash machines and a wave of crime and forgery. In the event, the participating countries adapted to the new currency quickly and smoothly. There were remarkably few technical glitches and not a single big euro disaster. Travel on the continent, meanwhile, has become a great deal easier, and there is some evidence that the euro is boosting cross-border business.

-------------------------