Europe's Political Economy

Achieving sustainable austerity

This Policy Brief by EPC Chief Economist Fabian Zuleeg updates the European Economic Sustainability Index, which combines short and long-term indicators of economic performance.

The results of the 2011 EESI show that there is some constancy at both the bottom and the top of the index.

The Scandinavian countries and the Netherlands perform best, while Italy and Greece are stuck at the bottom of the index.

The EESI strongly indicates that addressing the crisis must move beyond a singular focus on public finances.

To sustain the euro, Europe has no other choice but to jointly encourage more growth to achieve a level of sustainable austerity.