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Europe's future growth rate depends on the implementing the correct policy measure during the crisis, says Bruegel (Photo: European Community)

'Zombie' companies threaten EU recovery, says think-tank

An influential Brussels-based think-tank says "zombie" companies – enterprises badly in need of structural reform but kept alive by state subsidies – risk hampering EU growth levels once the economic crisis comes to an end.

"They stifle economic growth, while preventing reallocation of resources to sectors with higher growth potential," say authors Jean Pisani-Ferry and Bruno van Pottelsberghe of Bruegel in a publication released last week.

"There will always be a political temp...

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Europe's future growth rate depends on the implementing the correct policy measure during the crisis, says Bruegel (Photo: European Community)

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