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Holding Together what Belongs Together: A Strategy to Counteract Economic Polarisation in Europe

Claudius Gräbner (), Philipp Heimberger () and Jakob Kapeller ()

No 34, wiiw Policy Notes from The Vienna Institute for International Economic Studies, wiiw

Abstract: The 2017-2018 economic upswing in the EU only masked the underlying economic polarisation in the bloc, which will again become more evident as the economy continues to cool. What could a European strategy look like that counteracts the existing structural polarisation and thereby strengthens the cohesion of Europe? Based on a new study, this policy brief provides a sketch of policy suggestions on which the European Commission or leaders of EU member countries could take the lead, including Coordinated industrial policy programmes Measures against rising income (and wealth) inequality Institutional reforms of the eurozone Further reforms of the financial sector Efforts to harmonise social and ecological regulation in the EU towards higher common standards Wage and fiscal policies geared towards reducing excessive current account surpluses Measures to counteract tax avoidance by international corporations.

Keywords: Europe; European integration; economic openness; competitiveness (search for similar items in EconPapers)
JEL-codes: B5 F6 F45 (search for similar items in EconPapers)
Pages: 7 pages including 3 Figures
Date: 2019-09
New Economics Papers: this item is included in nep-hme
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