Publications

Something is rotten in the European Union! It looks like a hide and seek game, where countries and banks are playing a very dangerous game for the citizens’ future. Thus, between political instabilities, stealthy defaults, unhealthy and reckless banks and a real estate market that is artificially boucing back, there are many concerns about the EU’s future.

The crisis of the world economy since 2008 has encouraged various governments to increase the share of public spending. This increase was a general phenomenon among the OECD countries and contributed to an unprecedented debt hike. An IREF study comparing the development of key economic indicators over the recent period (1997-2011) for some 30 OECD member countries makes it possible to update the link between public spending and economic growth in the light of the first impact of deficit spending between 2008 and 2009.

And in France, there is a high level of unemployment whereas it is low elsewhere. And elsewhere, there is no Labor Code, no unions, no judges, and everybody is satisfied with the freedom of work, as reported by IREF European contributors.

WP 2013-06. Executive Summary There is a vast literature that documents the benefit of training, both for the employee (whose productivity and wage rate increase) and for the employer (who…

Reforming is a path for reelection: German Chancellor Angela Merkel privatized, deregulated, capitalized. She did not reflate nor accepted deficits : she reduced taxes. For sure, there are some lessons to learn for France.

  WP 2013-05. Executive Summary Although it is generally agreed that government size has a negative impact on economic growth, it is also manifest that the intensity of this causal…

“A nation with a small but strong government which gives people the space they need”: this what Dutch King Wilhem-Alexander wants for his people. And it has become a domestic policy on September 17th, 2013. The King has a life-time in front of him to consider the social, economic and political evolutions of society. Unlike an elected President, he does not have only a handful of years poisoned by the lurking idea of reelection for another handful of years to propose or back policies. That is why, in this view, the King can speak freely and without pressure of any kind. Thus the Dutch King declared in front of the Parliament that the welfare state was gone, over, finished. This 20th century concept is no longer relevant in our mordern society. John Galt on the throne of the Netherlands? Not yet, but that is a good step forward.

In the two months since we last reported, the media has focussed on the rebound in the EU area, where in the second quarter GDP grew at an annualised rate of 1.1%. The atmosphere has been optimistic, so optimistic, that even the Aug 20 confirmation by Germany’s Finance Minister Schaueble that Greece will default again caused barely a ripple. Even the stock market wobbles over fears of military conflict with Syria were muted (Dow Jones down 4.4% in August). The roundly castigated term “austerity” has appeared only rarely. When it does get a mention it is always used pejoratively, to explain why certain countries continue to have problems. For example, Portugal’s July announcement that it needs to renegotiate its 2011 bailout package is blamed on previously implemented austerity.

While Ireland may exit its bailout program at the end of this year, Greece is far from getting out of it. Around 10 to 11 billion euros ($13.1-14.4 billion) from the second half of 2014 will be needed to keep it going next year and in 2015. This will be the Third Act of the economic tragedy unfolding in Greece. Jeroen Dijsselbloem, Dutch Finance Minister, confirmed to the European Parliament that “as far as the potential need for a third program for Greece is concerned, it’s clear that despite recent progress, Greece’s troubles will not have been completely resolved by 2014”.

This is the transaltion of an article published by Nicolas Lecaussin on August 14th, 2013

What is the common point between Socialists as Claude Bartolone, President of the French National Assembly, Pierre Moscovici, the Finance Minister, MP Jérôme Guedj, Conservatives as Xavier Bertrand, Health minister during the Sarkozy Presidency, Environmentalists as European MP Daniel Cohn-Bendit, Nationalists as Marine Le Pen, President of the National Front and her speaker Florian Philippot, and the leftist review “Marianne”? Well, there are all anti free trade! All of them have found the perfect solution to the devastating economic crisis: more Government intervention, less economic freedom.