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Jan. 30, 2006
Regional wages: a solution to the lack of regional mobility
Regional disparities among EU countries remain substantial. In the second half of the nineties, the coefficient of variation of income per capita across 50 regions in the EU was almost double than across the 49 states of the continental US. Policy makers will then need to make a clear choice, in favour of greater labour mobility or higher wage flexibility. Otherwise, the combination of wage rigidity and limited labour mobility will continue to lead to unacceptably high unemployment differentials among regions. read more
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Dec. 24, 2005
British Presidency: the sad final act
The long battle over the EU budget ended last week with an agreement that leaves everything unchanged. It was a rare display of hypocrisy. The horsetrading involved just peanuts for some of the major actors involved in the deal. Governments running yearly budgets of the order of 700 billion euros or more were fighting over a few million Euros. The final result is a six-year, 2007-13, financial package largely concentrated on transfers to agriculture (42 per cent of the budget) benefiting roughly 3 per cent of the EU population. Another 35 per cent of EU spending is allotted to structural funds whose effectiveness is highly controversial. read more
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