1. The Eurozone’s Hidden Strengths
- Author:
- Daniel Gros
- Publication Date:
- 06-2017
- Content Type:
- Commentary and Analysis
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- For years, the eurozone has been perceived as a disaster area, with discussions of the monetary union’s future often centred on a possible breakup. When the British voted to leave the European Union last year, they were driven partly by the perception of the eurozone as a dysfunctional and possibly unsalvageable project. Yet, lately, the eurozone has become the darling of financial markets – and for good reason. The discovery of the eurozone’s latent strength was long overdue. Indeed, the eurozone has been recovering from the crisis of 2011-12 for several years. On a per capita basis, its economic growth now outpaces that of the United States. The unemployment rate is also declining – more slowly than in the US, to be sure, but that partly reflects a divergence in labour-force participation trends.
- Topic:
- International Political Economy and International Trade and Finance
- Political Geography:
- Europe