Quantifying the potential macroeconomic effects of the Europe 2020 strategy: stylised scenarios

Alexandr Hobza and Gilles Mourre

No 424, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: Summary for non-specialistsAn essential part of the Europe 2020 strategy consists of reforms with a medium- to long-term horizon that focus on promoting the sustainability of public finances and enhancing potential growth. Building on structural reform simulations with the DSGE model QUEST III, this paper presents several stylised scenarios combining fiscal consolidation efforts with differentiated progress in implementing structural reforms to explore the possible extent of gains from such reforms. The results confirm that if the EU succeeds in generating necessary reform momentum, GDP could increase by up to 7% by 2020. The extent of the benefits will crucially depend on the depth and breadth of undertaken reforms, however..

Keywords: Hobza; Mourre; structural; reform; Europe; 2020; 2020; QUEST; III; growth; employment (search for similar items in EconPapers)
JEL-codes: E24 E62 H68 L51 O30 O41 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0424

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