Monday, October 8, 2012

The ECB Wakes Up To Labor Markets

In a recent post about Europe's needing a new vision of itself, we wrote,

"For all the freer movement of goods and capital within the EU, the labor markets are not free. A combination of regulations, quotas and different work rules, as well as taxes serve to remove labor markets from the adjustment mechanism.

Without a freeer EU labor market, a move to budgetary integration is nonsensical."

The Wall Street Journal today reports the ECB publishing a 126 page report on the importance of labour market reforms. If the EU, specifically the economic union, is to fulfill its basic promise, Europe has to come to a consensus on these issues. Instead, European media continues to focus on meetings of Brussels eurocrats talking among themselves about nothing but preserving their own jobs.

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