The ongoing pandemic has brought a significant shift in the economic policy trajectory of the European Union.

The suspension of the Eurozone’s fiscal rules and the introduction of the European Recovery Fund has resulted in higher deficits, increased public debt levels and a renewed discussion on the future governance of the single currency area. In addition, continuing monetary support and low interest rates have stimulated inflation across asset classes, including real estate and equities. With revised central bank strategies allowing economies “to run hot” and experience higher inflation for longer, the economic debate now centres on the permanence (or not) of higher prices.

This event will discuss if inflation may come to represent the biggest challenge to Europe’s long term recovery. It will also address the political implications of rising prices, particularly in areas like property and transport, for middle class voters. It will further examine how the centre-right can balance concerns regarding economic growth with its fundamental principles of fiscal stability and low inflation.

Discussants:

Eckhard Wurzel
Professor of Economics, teaching at the universities of Konstanz and Göttingen, former head of the Bureau for the Euro Area and the European Union, OECD

Martin Sandbu
Economics Leader Writer, Financial Times

Moderator:

Eoin Drea
Senior Research Officer, Martens Centre