Unlocking Europe’s Piggy Bank

European companies invest too little. Instead, firms increasingly retain profits and build up large savings which contributes to low growth, rising inequality and financial instability. Boosting private investment, therefore, has become main priority for the new Commission. Based on new empirical evidence this policy paper by Nils Redeker proposes a novel strategy to achieve this goal: strengthening the bargaining position of labor.

Pic: CC Dawid Cedler, Source: flickr