Poor and under pressure: the social impact of Europe's fiscal consolidation. Bruegel Policy Contribution, Issue 2015/04, March 2015

Europe faces major challenges related to poverty, unemployment and polarisation between the south and the north, which impact adversely the current living conditions of many citizens, and also negatively impact medium- and long-term economic growth. Fiscal consolidation exaggerated social hardship. In vulnerable countries there was no alternative to fiscal consolidation, but in most EU countries and at aggregate EU level, consolidation was premature when the cyclical position of the economy was deteriorating. Spending on social protection was shielded relative to other spending categories, but public bank rescue costs were high. While the changes in the tax mix favoured job creation, the overall tax burden become more regressive. There is an increasing generational divide between the elderly and the young in terms of social indicators. Social spending on elderly people was favoured relative to spending on families, children and education. There is now a serious danger that a lost generation might develop in several member states. Forceful policies should include bold structural reforms, better use of the European economic governance framework, more demand promotion, and a revision of national tax/benefit systems for fair burden sharing between the wealthy and poor.

Poor Greeks or lazy Greeks? CEPS Commentary, 13 July 2015

Drawing on a wide array of statistical indicators reflecting economic activity, states of poverty, structural reform and governance in Greece, this Commentary by Ilaria Maselli provides substance to a debate that has become highly inflammatory and superficial in the latest episodes.

Greece’s poor growth prospects. CEPS Commentary, 21 August 2015

Four years ago – almost to the day – when the question of Greece’s debt sustainability was being intensely debated, these same authors argued that Greece would face strong headwinds in its effort to ‘grow solvent’. With the third rescue package dealing with the immediate liquidity issues in the works, and concerns being voiced by the IMF as well as other actors, they find in this CEPS Commentary that the issue is once again pertinent.