This is from Morgan Stanley’s Joachim Fels and Elga Bartsch:
They argue, based on recent OECD research, that a well-designed set of product market liberalisation and labour market reforms could boost GDP per capita by about 15 per cent over a 10-year horizon in many eurozone countries.
Essentially, it’s the “faster firing = faster hiring” argument and it’s apparently one necessary step on the road to the next European Renaissance (maybe someone should have told Mr Sarkozy sooner?):
Unfortunately, staggering on seems the most likely outcome right now.
Core infection and eurozone PMIs – FT Alphaville