FOCUS 12-02-2013: Fiscal consolidation and Inequality

The redistributive impact of tax and transfer-based consolidation

Many OECD countries need to put government finances back on a sustainable base. While their fiscal consolidation strategies mainly focus on effectiveness and adverse short-term effects on economic activity, attention should also be paid to implications for equity.

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FOCUS 10-01-2013: Strengthening euro area banks

Big changes are needed to strengthen the capital positions of euro area banks

European banks remain at the heart of the euro area crisis. Despite actions to strengthen banks and build a banking union, confidence in the euro area banking system remains weak, and is likely to remain so until underlying concerns over low capitalisation of some banks are addressed.

FOCUS 18-12-2012: Labour costs across the Euro area

Euro area labour costs converging, but imbalances persist

The euro area crisis finds its roots in the credit booms seen  in many countries following the introduction of the euro in 1999. Easy credit led to strong growth in a range of sectors, notably housing, as well as higher levels of public spending. Inflation in these over-heating economies was higher than the euro area as a whole. Rising prices led to rising costs and a loss of international competiveness.