European leaders have called for a comprehensive strategy for growth and investment in Greece and a task force will be appointed to set out the details of how European Union structural funds could be used to that end. If unused EU structural funds area used to leverage further loans from the EIB, there may be some €16bn available over the next two to three years.
It should be reallocated to an Economic Revival Fund and used to boost growth and competitiveness, by improving the quality of higher education; helping to lower labour costs; and supporting enterprise and innovation.
Our programme has a strong interventionist flavour – but that is because as long as the price system delivers the wrong signals, only intervention will trigger the necessary shift of resources. Continue reading »