President of the European Central Bank (ECB) Mario Draghi has been behind bailouts (photo:dpa)

Europe's stick and carrot economic policy fails to deliver

Policymakers in the eurozone seem to have had a change of heart. They have abandoned their stick and carrot approach to bailing out failing economies in Europe. But the new approach of a bail-in still gives confused messages and places short-term political goals ahead of sound, long-term growth policies which invest in healthy companies and those willing to be rewarded for their skill and business acumen.

EUROPE’S growth and public finance crisis has been characterised by two policy principles for several years - the stick or the carrot.

The stick meant that European Union member countries which failed to put their accounts in order would be penalise...

Unlock the report
8.95 EUR
Secure, instant payment by credit card
Professor Enrico Colombatto
Under this new approach bad banks, and possibly bad governments, would be rescued by their stakeholders - shareholders, depositors, suppliers and bondholders - rather than by the ECB printing more money
read more about it in the report
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possible effects of current decisions.
By clicking "I Agree" below, you acknowledge that you accept our Privacy Policy and Terms and Conditions. Feel free to check out our policies anytime for more information.
I agree