Home > Uncategorized > Will the eurozone recover?

Will the eurozone recover?

Probably the best decision made by the UK over the past couple of decades was to refuse to join the euro. It should always be remembered that there was cross party consensus on this issue with Gordon Brown being just as opposed as the Conservatives. The impact of joining the mismanaged and ill judged concept would have been catastrophic

The euro has seemingly survived the threat of outright collapse but the aftershocks of the crisis continue to this day. The US and UK economies are racing ahead. The eurozone is stuck in near recession. The contrast is startling

http://www.telegraph.co.uk/finance/economics/11033285/Broken-Europe-economic-growth-grinds-to-a-standstill.html

But are the reasons for this simply down to the currency difficulties? Yes the Russian crisis has impacted and there are no doubt other extraneous factors but there is a belief that the culture within the zone is simply not enterprising enough. This was articulated in an article by Matt Ridley in the Times earlier this week. Sadly I cannot attach a link but there were some surprising stats which could not solely be explained by the euro crisis

This one in particular

Growth in GDP since 1999

UK 30%

Germany 18%

France 17%

Italy 3%

1999 does of course predate the near collapse of the euro but not the euro itself. The figures suggest a more fundamental malaise. As I know from overseas businesses seeking finance to start operations in the UK (French in particular), the UK is seen as a good place to do business. We have advantages in many areas, some of which are created and some of which are good fortune but we shouldn’t gloat. Ultimately a prosperous eurozone means a more prosperous UK

The solution? Difficult to wave a magic wand but surely once again the whole infrastructure of the EU needs examining to see if it is delivering the right climate for business. I suspect that the answer to that is a resounding no

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