Prof Joseph Stiglitz: ‘Servicing historic debt will occupy more and more of the fiscal space in Europe, which will in turn force a contraction of investment and ultimately lead to lower economic growth.’ Picture: James Horan/Photocall Ireland
The fiscal rules of the European Union make no economic sense and were “drawn out of thin air”, according to Prof Joseph Stiglitz, a Nobel prize winning economist who previously held senior positions in the World Bank and the Clinton Administration. The world-renowned economist said the EU’s growth and stability pact, which has underpinned the central fiscal rules of the bloc for the past 30 years, had many “fundamental flaws” and were counterproductive...