The Euro’s House Divided
The European Commission’s latest economic outlook paints a disheartening picture of a deep and persistent economic and social divide within the eurozone. Such a gulf within a monetary union cannot be sustained for very long.
BRUSSELS – The European Commission’s latest economic outlook paints a disheartening picture: unemployment rates close to or above 5% in Austria, Germany, and the Netherlands in 2014, but above 25% in Greece and Spain and roughly 15% in Ireland and Portugal. In the same year, per capita GDP is expected to be almost 7% above its pre-crisis level in Germany, but about 7% below in Ireland, Portugal, and Spain – and a terrifying 24% below in Greece. So the deep economic and social divide that has emerged within the eurozone is expected to persist.
BRUSSELS – The European Commission’s latest economic outlook paints a disheartening picture: unemployment rates close to or above 5% in Austria, Germany, and the Netherlands in 2014, but above 25% in Greece and Spain and roughly 15% in Ireland and Portugal. In the same year, per capita GDP is expected to be almost 7% above its pre-crisis level in Germany, but about 7% below in Ireland, Portugal, and Spain – and a terrifying 24% below in Greece. So the deep economic and social divide that has emerged within the eurozone is expected to persist.