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.