SocGen: Eurozone ... Audacity Required Or Doldrums Ahead

Economists at Societe Generale have published their research piece "Eurozone ... audacity required or doldrums ahead", that focuses on the outlook for Eurozone, and some suggestions - what to do? It looks like the link is not working, try to find that reasearch via this site: http://www.globalmarkets.sgcib.com/economics/home.rha

Really, what to do? Economists at SocGen Find 3 key recommendations:

1-Consolidate the monetary union, which means putting a stop to any further expansion during the time necessary to rebuild a more harmonised structural
framework for its members, which is crucial for optimising the area’s monetary policy.
2-Improve the eurozone’s growth potential with an ambitious public investment policy in sustainable development; energy research, and technological innovation – the three pillars of development vital for ensuring global economic growth in the long run.
3-Give consumers and governments greater financial flexibility, by purposely favouring an inflationary policy. Europe could only regain economic room to manoeuvre by reducing the public and private debt burden. In the absence of decent
growth in real income, inflation is the only way to achieve this.

In the previous post it was discussed that membership in the euro area is regarded by some as the solution to the current problems in countries like Latvia. Read the full research paper, but the box below tells the opinion of economists at SocGen (click to enlarge) regarding the EMU enlargement: