CEPS

The European Commission, the EU’s executive branch, on Wednesday formally kicked off what is now known as the “European Semester” – a new six-month process of reviewing national budgets and reform programmes to make sure the countries are getting their fiscal acts in order.

The Commission considers the process so important to pulling the continent out of the current crisis that it organised a day-long conference in Brussels to discuss its role in the post-crisis world.

But at the first panel of the day, two of the most influential economists in town – Marco Buti, the powerful head of the Commission’s economic and financial affairs directorate, and Daniel Gros, director of the respected Centre for European Policy Studies – got into a heated tussle over whether the whole process was just one big waste of time.

Gros played the skunk at the garden party, saying that all the attention being paid to the European Semester – essentially another round of austerity recommendations – was taking time and energy away from the real task at hand: fending off the bond market’s attack on one eurozone country after another.