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Thread: stimulus from the european investment bank

  1. #1
    Politics.ie Member
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    Default stimulus from the european investment bank

    As was agreed in a meeting of eu heads of states some months back the european investment bank is engaging in stimulus measures
    Europe is responding
    http://www.nytimes.com/2013/04/18/op...ding.html?_r=0
    EIB to provide

    Under this idea; countries must still balance budgets and move to coordinated fiscal policies across Europe. Improved regulation will still seek to reduce the risk of a future crises caused by a repeat of the factors leading to the current crisis. So public sector cuts are not going away, however this is a constructive measure to the problems caused by the crisis and the subsequent public spending cuts

    The EIB will provide credit on favourable terms to small companies with potential to create jobs. This will enable these companies to expand and provide growth which will reduce unemployment, lower social welfare costs and increase tax revenue. And of course growing small companies contribute to overall GDP growth which will reduce the burden for a country to meet the GDP / debt ratios required under maastricht and reinforced in recent EU agreements.

    This approach makes sense as govts cant waste money through politically expedient but unsustainable public deficits. The public sector is good at some things and has it's place but I'd rather trust the private sector to put stimulus to good use than politicians.

    What do we think about this coordinated european reaction to address unemployment and soften the impact of balancing budgets ? Surely a good step in the right direction

  2. #2
    Politics.ie Member friendlyfire's Avatar
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    Well,well the EU finally waking up after a trail of economic destruction across Europe.They are complete failures,the whole project is dying a slow and painful death along with the countries in it.
    Stupidity is far more fascinating than intelligence, after all intelligence has it's limits.

  3. #3
    Politics.ie Member king5494's Avatar
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    Don't worry
    European Household Saving rate collapsing.



    These clowns haven't got a clue what they're doing. (or do they?)
    "There are two ways to conquer and enslave a nation. One is by the sword, the other is by debt." -- John Adams

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