Dr. Barbara Kolm talks about the grim economic outlook for Europe in an interview with the Washington Times.

The ECB’s policy with its negative interest rates and European politicians living in a “parallel universe” constitute the biggest problems for future growth within the EU. “The modest growth rates of below 1% over the last years can not really be considered growth”, Kolm states. Future developments will depend on politicians smarting up and embracing wise policies that may eventually lead to serious and sustainable growth, providing reasonable incentives for enterprises. At the moment however these positive changes are quite out of sight.”

 

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Dr. Barbara Kolm talks to Kitco NEWS about the current economic situation in Europe.
While she thinks that some things have improved and private business are doing quite well or are recovering in most of the countries productivity is still an issue in general. However, it is governments which continue to be in trouble and are still reluctant to reduce their sovereign debts. The political framework all over Europe needs urgent reform!
Especially the policies of the ECB have been flawed over the last few years. While its original task consists in merely keeping the money- supply constant and avoiding inflation, it is engaged in the frivolous printing of new money and the bailing out of banks and whole countries.
“Structural reforms may hurt in the beginning, but they need to be implemented nevertheless. In the long round sound economic policy will definitely pay off”, Kolm is convinced.

 

 

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