Europe's Stagnant Future

Erope’s Stagnant Future

Uri Dadush Q&A February 21, 2013 | http://carnegieendowment.org/2013/02/21/europe-s-stagnant-future/fivh

 

Summary

The euro crisis is far from over. The best possible outcome for Europe may be years of stagnation, as the danger of a renewed financial crisis is very real indeed.

With Italians headed to the polls to elect a new parliament, many Europeans are hoping that the worst of the euro crisis is behind them. But the specter of years of low growth and high unemployment remains.
In a Q&A, Uri Dadush analyzes the euro crisis and what European leaders need to do to fix their divergent competitiveness trends. Dadush argues that the best-case scenario may be years of stagnation as the danger of a renewed political and financial crisis with global implications is still very real indeed.

• Is this the beginning of the end of the euro crisis?


• Does the eurozone face an extended period of stagnation?


• Will the euro survive?


• What countries are most at risk? Is there still the threat of a Grexit?


• How important is Italy’s election?


• Have European leaders done enough to avert calamity?


• What more needs to be done to establish the architecture needed to protect the euro over the long term and reignite Europe’s economic growth?