Since 2014, the eurozone has received two opportunities for economic growth: the quantitative easing (QE) programme and plummeting oil prices. But, has the European Central Bank (ECB) capitalised upon these gifts to advance the eurozone economy? Patrick Artus, Natixis’ chief economist, believes the ECB’s success has been partial.
Writing for FTSE Markets, Artus explains that – when such stimuli subside – the eurozone’s structural reform has been too ineffectual in order to achieve economic resilience. For instance, continually poor productivity gains and high debt burdens threaten to exacerbate once oil prices normalise or the ECB abandons its QE programme.
That said, Artus believes the eurozone labour market’s long-term restructuring – an opportunity afforded to eurozone governments due to the ECB’s support – has bolstered total eurozone employment. Whether this consolation is enough to resuscitate the eurozone, however, is yet to be seen.
To read the full article, please click here.