The report recommends easing the burden on monetary policy by loosening fiscal policy, especially in Germany. The initiative of the EU Commission, wrongly criticized by Finance Minister Schäuble is a step in the right direction, but insufficient.
Other themes covered: addressing inequality, correcting macroeconomic imbalances and stabilising the financial sector.
The crisis in Europe drags on. The recovery is fragile and deflationary pressures have not been overcome. There is a risk of longer-term damage if Europe does not lastingly boost public investment. This is one of the conclusions of the fourth independent Annual Growth Survey.
The 2015 report discusses the dangers of deflation in the euro are; the increase in inequality and poverty; the fragmentation of the banking system and its effects on the ECB's monetary policy; an investment strategy for an environmentally sustainable EU and the unequal real exchange rate adjustment between the euro area members.
The first independent Annual Growth Survey looks at the self-defeating austerity in the euro area; the social impact of the economic crisis; the relation between macroeconomic imbalances and the euro area crisis and possible alternative strategies for reducing public debt.