The 2008 financial crisis was not a one-off event. The resources that were available to cope with that crisis would not necessarily be there if there was another crisis. Government debt and GDP ratios are still high, and pension and health costs are escalating across Europe.
MADRID | By Francisco López | Spain is not an oasis inside the Eurozone. The 18 main private research services believe that the slowdown in the European economy is already taking its toll on Spain. Besides, they forecast that Spanish GDP will grow slower than expected in the last quarter of 2014 (0.4%) versus 0.5% of the third quarter or 0.6% of the second quarter.
SAO PAULO | By Marcus Nunes via Historinhas | In “What caused the great recession in the Eurozone? What could have avoided it?” Philippe Martin and Thomas Philippon begin thus: There is a wide disagreement about the nature and cause of the Eurozone crisis. Some see it as driven by fiscal indiscipline, some emphasise excessive private leverage, while others focus on external imbalances, sudden stops, or competitiveness divergence due to fixed exchange rates, as the following quotes illustrate.
MILAN| By Fabrizio Goria via Presseurop | Although German Chancellor Angela Merkel seems assured of victory, the German elections will be revelatory. The results should bring answers to a number of open questions concerning the future of the economy and of European institutions.
BRUSSELS | By Ann Mettler | The worst response to the Italian elections would be not to speak the truth, to cave in to the idea that somehow “austerity” is to blame for the current woes, that once again breaking the rules of the Stability and Growth Pact would somehow improve the situation.