OECD Economic Surveys : European Union and Euro Area 2023 / OECD.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, author, issuing body.

Series:

OECD Economic surveys (Series)

OECD Economic Surveys

Language:

English

Subjects (All):

European Union countries--Economic conditions.

European Union countries.

Physical Description:

1 online resource (143 pages).

Edition:

1st ed.

Other Title:

OECD Economic Surveys

Place of Publication:

Paris : OECD Publishing, [2023]

Summary:

The European recovery has been disrupted since the onset of Russia's war of aggression against Ukraine. Co-ordinated and timely policy action helped avoid a severe downturn, but the near-term outlook is clouded by uncertainty and downside risks. Monetary and fiscal policy need to become sufficiently restrictive to reduce underlying inflationary pressures durably. Fiscal sustainability should be grounded in well-prioritised, efficient public spending and underpinned by improved economic governance. Protecting the level playing field through a strong state aid framework and deepening the Single Market would open opportunities for firms to grow and innovate, facilitating needed structural change. Furthermore, achieving the net-zero target by 2050 requires an acceleration of emission reductions. More action is needed across all sectors, but particularly in sectors not covered by emission trading, notably agriculture, building and transport. Reducing emissions in these sectors will rely on regulatory measures and a gradual alignment and raising of carbon prices. An important element of the green transition is affordable and secure energy, which requires more integrated electricity markets. Deeper capital markets could support the development of new clean technologies. Moreover, improving labour mobility and skills will help to reduce transition costs.SPECIAL FEATURE: ACCELERATING THE GREEN TRANSITION.

Contents:

Intro

Foreword

Glossary of acronyms

Executive summary

The economic recovery has been disrupted by external shocks

Monetary policy needs to reduce inflation durably

Fiscal spending must be targeted and sustainable

Boosting inclusive growth through a stronger and deeper Single Market

Accelerating the green transition

Limiting reallocation costs from the green transition

Basic statistics of the European Union, 2022

Basic statistics of the Euro Area, 2022

1 Key Policy Insights

The European Union is tackling critical challenges

Economic recovery has been slow and uneven

The recovery has been hampered by the energy crisis and high inflation

A forceful policy response helped to reduce the fallout from the energy crisis

Growth will slow down in 2023, gradually picking up in 2024

Monetary policy is broadly appropriate but financial risks are increasing

The ECB should continue its data-dependent approach to policy

Inflation has distributional implications, but they are beyond the ECB's mandate

Unconventional policies should be gradually withdrawn

Higher interest rates are beginning to weigh on the economy

Financial sector integration needs to be stepped up

Fiscal policy needs to become sufficiently restrictive

Planned public investment may be delayed

A broad reform of economic governance is needed

Stronger fiscal councils could help improve compliance more than reliance on sanctions

The Single Market must be protected and deepened

Improving product market regulations further would deepen the Single Market

Strong state aid framework is needed to protect the level playing field

The EU can help increase resilience

Avoiding market fragmentation to spur progress towards a digital and green economy.

Increased labour mobility can mitigate skills shortages and deepen the Single Market

Strengthening the anti-corruption framework of EU countries and institutions

References

2 Accelerating the green transition

Progress towards net zero

The EU's climate mitigation policies

Towards more efficient mitigation policies

Free allowances reduce the effectiveness of carbon pricing

Strengthen carbon markets for sectors not covered by the ETS

Effective carbon rates vary across countries and sectors

An internal carbon price can improve efficiency of public spending

Making financial markets work for the green transition

Targeting mitigation policies to sectors

Ramping up mitigation in agriculture

Accelerating the energy transition

Bringing down emissions in transportation

References.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-42241-2

92-64-49309-3