Europe's recovery policy is inadequate

Thursday 5 June was the night of the economy. Two leading American economists, Paul Kurgman and Carmen Reinhart, have given their views on the European economy and recovery policy.

The picture that Kurgman and Reinhart paint of the European economy and the monetary and economic recovery policies pursued is anything but rosy. Economist and former CEO of Robeco Jaap van Duijn later spoke during the lecture 'Stock market and economy'. Jaap van Duijn was also anything but optimistic.

The title of Mr. Kurgman's lecture was self-explanatory: "The new euro sclerosis." The US has been more successful in solving the banking crisis than Europe.

Krugman observes that spending is stagnating across the economy as almost every debtor in the private and public sectors is trying to save their way out of debt. As a result, there can be no economic recovery.

The AEX index is struggling with the 400-point mark, the business results are not convincing. Companies say they are suffering from the expensive euro and report setbacks. Financial markets indicate that they expect less market growth in the near future.

Nevertheless, Van Duijn sees investment prospects. However, the former CEO of Robeco says he does not see this in government loans and savings. Nor in equities because the share price, partly due to low interest rates, has risen too much.