Posted by: Dirk | November 4, 2014

reality check: Olli Rehn

Olli Rehn, European Commissioner for Economic and Monetary Affairs and the Euro of the European Commission from 2004 to 2014, co-writes in the FT:

If persistent high fiscal deficit and increasing public debt resulted in rapid economic growth, then France and Italy would be European champions; Japan would be the world’s leading economic power; and Finland would be running the show in the Nordic area. What these countries have in common is a lack of appetite for structural reforms.

A reality check is needed for these supposed non-brainers. So, if persistent high fiscal deficit and increasing public debt resulted in rapid economic growth, then …

1. France and Italy would be European champions …

europeanunion

Actually, behind Germany France is number two in Europe, tied with the UK, and Italy comes in third. Whatever Rehn means by European champions, economically France and Italy should make the cut.

2. Japan would be the world’s leading economic power …

japan

It seems that Japan is #3 in the world, which is not the world’s leading power but pretty close.

3. Finland would be running the show in the Nordic area

nordic

Well, Olli Rehn is from Finland. He knows his mother country.


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