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What Causes the Delay in Reforms in Europe?

Malte Rieth () and Lisa Gehrt

No 99, DIW Roundup: Politik im Fokus from DIW Berlin, German Institute for Economic Research

Abstract: The academic literature provides no clear answer to this question. In principle, the recent slowdown in reform activity and fiscal consolidation in the euro area may derive from several developments. Potential reasons involve the end of the economic recession, the provision of financial assistance to crisis countries, and improved financing conditions for governments as a result of unconventional monetary policy, which all reduced reform pressure. While existing studies analyse several of these causes of reform delays in general, there is only very limited evidence for such a relation in the current environment in the euro area.

New Economics Papers: this item is included in nep-eec
Date: 2016
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