Two conflicts with the potential to increase European welfare
by Karl Aiginger
The answer to two major European conflicts, Brexit-induced financial problems and the refugee crisis, could be welfare-enhancing. Only after implementing solutions to those problems can Europe start to reform governance and boost innovation, writes Karl Aiginger.
These weeks, EU policy looks hopeless. In discussing the financial consequences of Brexit, such as €14 bn lower net contributions, member countries quickly split into a group favouring higher taxes and another calling for the reduction of expenditures.