The author of this article has a diplomatic (or elliptical) way of expressing that, because European politicians have failed to change policies that make it very expensive to start new businesses or hire (or fire) workers, economic activity is stuck in neutral there. Most European nations are socialist, taxing businesses, especially small businesses in the form of high benefits, short work weeks, long mandated vacations and severe penalties for laying people off during difficult times. This discourages creative entrepreneurs from bothering to take the risk of starting new ventures.
“Implications of the SNB decision extend far beyond Switzerland”
By Mohamed El-Erian January 15, 2015 5:57 pm
You need only look at the immediate reaction of the foreign exchange markets to the Swiss National Bank’s announcement on Thursday that it was dismantling its one-sided currency peg against the euro to get a sense of the momentous and surprising nature of the decision.
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