Critics of the euro zone have long claimed that it suffers from structural flaws that threaten its long-term survival. The Greek sovereign-debt crisis has done much to vindicate these misgivings.
Deutschlands Wachstum im zweiten Quartal war außergewöhnlich. Das Wachstumstempo beizubehalten wird aber sehr schwierig, sagt Philip Whyte, vom Londoner Think-Tank Centre for European Reform.
Most European countries are making drastic cuts to their defence spending. Several, including Britain, are contemplating giving up significant chunks of their military equipment.
Prior to the introduction of the euro, European economies running big trade deficits routinely devalued their currencies against the Deutschmark and other currencies tied to it. This prompted allegations of beggar-thy-neighbor activity and even calls for protectionism.
Nirgendwo klaffen die Positionen zwischen den britischen Konservativen und Liberaldemokraten weiter auseinander als in der Europapolitik. In der Koalitionsvereinbarung ist dem Thema ein eigenes Kapital gewidmet.
Sir, Lex on the Portuguese bail-out (May 4) implies that the International Monetary Fund would have imposed more rigorous criteria on the crisis-hit country than the “soft-touch” European Union.
"C’est bien là la cause de toutes les difficultés qu’auront ensuite la Grande-Bretagne et l’Europe à accorder leurs violons", estime Simon Tilford, chef économiste du CER, basé à Londres.
"The impact on growth from changes in the minimum wage comes down to the level at which it is set," said Simon Tilford, chief economist at the CER in London
Simon Tilford of the CER claims the two sides will struggle to open their markets fully to each other’s farm produce. "When they get down to the nitty-gritty, it’s possible that the negotiations will founder on some of the cultural differences between the EU and the US over things such as genetically modified food," says Tilford.
"A referendum looks almost inevitable now but the timeframe is uncertain," says Katinka Barysch, deputy director of the CER in London. She says the debate is already having a negative economic impact: Investors are getting nervous.
“Politics is one of the black swans of the eurozone this year. In Italy we could have political uncertainty, perhaps the return of Silvio Berlusconi. In Spain, we don’t know where the current scandal surrounding the prime minister will go", said Philip Whyte, of the CER
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