Finland Times

Finnish experts suggested for bringing reform in market, robust growth in economy and narrow down social security expenditure to achieve growth in Euro Zone economy.

Reviewing the survey report of the European Union statistical agency, EUROstat, conducted last year, the Research Director of Pellervo Economic Research Institute, Markus Lahtinen and the chief economist of SAK, Olli Koski, also hoped that the figure might be improve slightly next year.

The Eurostat survey said that the Euro Zone failed to show any growth during the last quarter of 2012, for the first time since 1995. 

The figures were more sinister predictions, especially for Germany and France.

 Lahtinen observed that growth is likely to be below one percent and the German economy is growing while Spanish and Italian to decline in contrast France economy is still posing a question mark.

In terms of the development of the economy, Lahtinen said that Labour market reform is one of the main criteria to improve the economy.

He also said that unemployment rate and social security expenditure should be also reduced to overcome the situation.

He said that structural reforms would not show the result this year but it would show the growth in the next year, particularly in terms of unemployment and the level of indebtedness.

Lahtinen suggested for the need of robust growth, otherwise there would be a risk for collapse which may lead to a very hard situation .

He also suggested for expanding the economic policy.

In terms of development of the economy, he suggested that the volume of investment should be increased; especially Infrastructure development should be given the top priority. He also emphasized to increase the housing and education sector investment.

Meanwhile, Olli koski suggested that saving is always very  bad for the economy.

A sound and smooth flow of money is warranted to stimulate the whole process. 

He, however, hopped that the effort of the politicians in the Euro Zone are is on which may put an impact to develop the situation.