chapter  Chapter 5
24 Pages

The Bruxelles Consensus and the Fourth-P Government

WithBruno S. Sergi

The idea is that transition governments must do neither too little nor too much. They ought to simply create necessary conditions for increasing the supply side of their national economies on low inflation risks and sustained Gross domestic product growth. Searching for a balance between an economic recovery and social consensus is crucial. A policy rethinking of the use of instruments from what traditionally applied in advanced economies is necessary, however. Sustained economic growth along with real social and economic convergence on Western standards are the definitive tasks of this new century’s first decade. In marked contrast with the Western club’s experience, the Eastern club embraced a socialist-type economy that operated by political repression and economic inefficiencies throughout the 1980s. In the 1980s, the European Communities started a policy toward economic integration between poor and rich regions and made an enlargement to include the Mediterranean countries of Europe.