In Search of Symmetry in the Eurozone

Paul De Grauwe
Content Type
Policy Brief
Centre for European Policy Studies
One of the major problems of the eurozone is the divergence of the competitive positions that have built up since the early 2000s. This divergence has led to major imbalances in the eurozone where the countries that have seen their competitive positions deteriorate (mainly the so - called ' PIIGS ' – Portugal, Ireland, Italy, Greece and Spain ) have accumulated large current account deficits and thus external indebtedness, matched by current account surpluses of the countries that have improved their competitive positions (mainly Germany).
Economics, Markets, Regional Cooperation, Global Recession, Financial Crisis
Political Geography
Europe, Greece, Germany, Spain, Italy, Portugal, Ireland