Huge global imbalances have emerged as a result of the massive current account deficits of the US. The US deficit is largely matched by surpluses in Asia, oil-exporting countries and a few European countries. Correction of global imbalances will require substantial depreciation of the US dollar,...

Educational systems are under pressure in many countries. On the one hand, the costs of education are soaring as both enrolment rates and the length of studies trend upward, while the cost per pupil grows as fast as GDP per capita. On the other hand, there is a perception that standards and...

Growth performance among the EU-15 countries has been mixed. While it has been sluggish in France, Germany and Italy, several other EU countries have done well. Some successful countries, such as Finland, Ireland, Sweden and the UK, have relied strongly on the introduction of new technologies,...

Authors of the Report on the European Economy 2006

Merger activity is gathering pace in Europe. The policy challenge lies in how to achieve cost-cutting increases in firm size from restructuring in the face of globalisation, while simultaneously maintaining sufficient competition. This requires that obstacles to hostile and cross-border mergers...

The economic recovery in Europe is expected to continue. GDP in the euro area is forecasted to grow by 2.0 per cent in 2006, remaining lower than in most other parts of the world. Inflation in the euro area is expected to reach 1.9 per cent this year. The labour market situation will only...