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Gunter Grittmann
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Europe should address the crisis of confidence at the European bond markets through a direct equalisation of interest rates. Such a solution avoids the collective liability of Eurobonds and is affordable even if applied to Spain and Italy. This is the result of analyses conducted by Friedrich Heinemann, head of the public finance department at the Centre for European Economic Research (ZEW) in Mannheim. read more
"The European Fiscal Contract hasn't got anything to do with stubborn austerity policy", clarifies Dr. Friedrich Heinemann. The head of the Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW) in Mannheim in fact indicates that improved national debt limits signal a turn towards a sustainable fiscal policy. This allows countries to regain market confidence, even though the current deficits are still high. read more