Open Letter to European leaders on Europe’s banking crisis: A call to action

This is a once-in-a-lifetime crisis. Trust among financial institutions is disappearing; fear may spread. Last week’s US experience showed that saving one bank at a time won’t work. A systemic response is needed and in Europe this means an EU-led initiative to recapitalise the banking sector. Unless European leaders immediately unite to address this crisis […]

Italian budget: How to squander the revenue surplus

Tito Boeri and Pietro Garibaldi The Italian Senate voted last Friday the 2008 Budget Law and a package of fiscal measures effective already in the last quarter of 2007. For the first time since 1992, an Italian budget law worsen public finances with respect to the baseline scenario, at unchanged policies. The large revenue surplus […]