Economic perspectives: Courage to invest will pay off

After ebbing for a while, the monetary policy tsunami in Europe that has been under way since 2012 has now risen again to an impressive height. Low inflation, emblematic of low growth rates and a lack of incentive to invest, is casting a long shadow over the common economic area. Amongst other things, the EU crisis has led to lower expenditure in many industries.

On top of this come planning uncertainties, amplified by the trade dispute and a European system increasingly focused on acting in a short-term, ad hoc basis. The European economy is being driven towards tighter fiscal policies, with a lack of courage to invest in the future and digitalisation in some quarters.


Increasing attention is therefore being paid to having an overall climate that favours investment. If spending cuts are loosened, this will encourage essential investment in the future. The conditions could not be better: courtesy of the central banks, money is almost free and the innovative power of the younger generation is already playing an active role in various issues for the future. Economic growth in Europe is estimated to be around 1%, well below the 2% level of productive potential. A sustainable turning point in fiscal policy is looming, which will stimulate the courage to invest more.