Time for Change in EU Economic Policy


Kurt Bayer

wiiw Policy Note/Policy Report No. 68, May 2023
17 pages

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For a number of years it has become obvious to an increasing number of observers that the economic policy framework of the EU and the euro area is no longer ‘fit for purpose’. This effectiveness gap in economic governance has become even more visible during recent multiple crises (ranging from the financial crisis, the Covid-19 pandemic and the ever more manifest climate emergency, to the energy and inflation crises reinforced by the Russian invasion of Ukraine). The EU reacted to all of these crises with a large array of instruments, in more or less effective ways. However, going forward the EU needs an effective ex ante framework geared towards the objective of improving the well-being of its citizens with adequate instruments, across the whole geographical area of the EU, rather than the current focus on individual member states.


Keywords: EU forward looking strategy: concentration on internal market and EU area as a whole

JEL classification: E61, E62, E63

Countries covered: European Union, Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Eurozone, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Cyprus, Hungary

Research Areas: Macroeconomic Analysis and Policy