Growth is truth

From the IMF assessment of its 2010 program for Greece, the section dealing with relations within the Troika i.e. European Commission (EC) and ECB (p31) —

And from the Fund’s perspective, the EC, with the focus of its reforms more on compliance with EU norms than on growth impact, was not able to contribute much to identifying growth enhancing structural reforms. 

Two issues here. First, aren’t EU norms supposed to be growth enhancing? But second, does the Fund really think there is a definitive account somewhere of specific structural reforms that will surely result in growth within a couple of years? The back to reality reading list might want to start with Adam Smith.

2 thoughts on “Growth is truth

  1. “aren’t EU norms supposed to be growth enhancing”: well … I’m not 100%. Do you think the EC and the EP are making all their norms on the basis of economic growth enhancement?

  2. well, EU norms ARE growth enhancing indeed. within the given paradigm at least.

    but for the EU as a whole. considerations on polarisation effects, displacement and related positive feedback loops are left out of the picture.

    would they be taken into account the ugly necessity of transfers, multiple to the current provisions, would come to the surface. and this is something the “northern” politicians cannot admit.

    indeed the EU policies, miss the main EU aim, economic, social and territorial cohesion. instead they lead to disintegration, but what the heck. thats what is in the textbook.

Comments are closed.