Brussels, 24/01/2001 (Agence Europe) - The European Parliament's Committee on Economic and Monetary Affairs discussed, on Wednesday afternoon, a report on the EU's economic prospects in 2001 and 2002 drafted by seven of the main European economic research institutes, a report that challenges how appropriate it is to pursue austerity policies prescribed by the Stability and Growth Pact. The experts (from Wifo, ETLA, OFCE, IfW, DIW, Prometeia ane NIESR) consider, it states in a press release, that, after years of under-investment, it is necessary to seek alternatives to these policies in the medium term, and above all examine the role of the public sector in favour of growth. According to the report, the Stability and Growth Pact is not "necessarily the best framework" for obtaining stronger growth in the EU.
The report encourages the United Kingdom to carefully weigh the costs and benefits of remaining outside the euro area, especially if membership of the area continues to expand. While considering it premature to conclude that the UK should enter the euro area at the exchange rate that prevailed at the end of 2000, experts currently consider there are "presently comparatively few macroeconomic differences between the state of the two economies", that is, between the British economy and the economy of the euro area.