Opinion & Analysis

A Growth Strategy for Europe, by H.H. Kotz, E. Labaye and S.Smit

With the third Greek loan program almost in place, it is time for European leaders to start focusing on the future. That does not mean concentrating on Greece’s debt-service schedule over the next few months. Rather, it means embarking on a broad economic-reform program that combines growth-enhancing supply-side reforms and demand-side efforts to support investment and job creation. Low oil prices, a more competitive euro exchange rate, and the European Central Bank’s judicious use of its full suite of monetary-stabilization policies – not to mention the fact that the threat of Grexit has been averted, at least for now – provide a favorable backdrop for such ambitious reforms. Even the political environment may not be as inauspicious as is often believed: Despite the worrying rise of anti-European sentiment in many countries – especially those hit hardest by the crisis – there is a palpable yearning among Europeans to break out of the continent’s debilitating economic (and political) rut.