Europe’s Make-or-Break Year

It is no exaggeration to say that the EU is threatened, both internally and externally, by reactionary nationalism, which is why the next euro crisis will come in the form of a political crisis. So why are Europe's leaders clinging to policies that have made a bad situation worse?

BERLIN – The euro crisis, it is said, is over. Calm has returned to financial markets, amid ironclad assurances by the European Union authorities – particularly the European Central Bank – that the monetary union will be preserved. But Southern Europe’s economies remain depressed, and the eurozone as a whole is suffering from stagnant growth, deflationary pressure, and, in the crisis countries, persistently high unemployment.

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