In his latest editorial for LUISS Open’s “A view from Brussels”, Daniel Gros analyses the effects of non-performing loans on the broader Italian credit and banking sector, with a specific reference to France and Germany, arguing that NPLs do not hamper the possibilities of economic growth
Draghi’s quantitative easing has been a determining factor in breaking the ‘doom loop’ between weak banks and weak Countries. Now, after the extraordinary monetary policies, there is a development cycle stronger than before, as in the case of exports and capital flows
Daniel Gros analyses the state of regional convergence within the European context. He finds that different country groups have had quite different experiences following the financial crisis and that in most cases there has been little convergence across regions within countries. More importantly, the seemingly permanent differences in regional per capita income are for some countries mainly the result of differences in occupation ratios.
There are two keys for responding to the demand for flexible, innovative economies, able to adapt to technological change and the challenges put forward by globalization: investing in human capital and reviving the internal market