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

By: Gräbner, Claudius.
Contributor(s): Heimberger, Philipp | Kapeller, Jakob.
Material type: materialTypeLabelBookSeries: wiiw Policy Notes and Reports: 34Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2019Description: 7 S., 3 Figures, 30cm.Subject(s): Europe | European integration | economic openness | competitivenessCountries covered: European Union | France | Germany | Italywiiw Research Areas: Macroeconomic Analysis and Policy | International Trade, Competitiveness and FDIClassification: B5 | F6 | F45 Online resources: Click here to access online Summary: 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.

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.

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The Vienna Instiute for International Economic Studies (wiiw)

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