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EUROPE / The fairy tale of equality in UErope
Date of publication at Tlaxcala: 23/11/2020
Original: Das Märchen von der Gleichheit in Europa

The fairy tale of equality in UErope

German-Foreign-Policy.com

 

German economic researchers predict a growing gap between the eurozone's rich North and its impoverishing South.

BERLIN (Own report) - The socio-economic gap between the rich North and the impoverishing South of the Eurozone will continue to grow, according to a recent study by the business-oriented Cologne Institute for Economic Research (IW). The gap within the eurozone had already significantly grown between 2009 and 2018, with the economy of the North having grown by 37.2 percent, while by only 14.6 percent in the South. This development will continue over the next 25 years, the IW predicts. The IW notes a certain catch-up effect in Eastern Europe, which, however, will not lead to their catching up to the West, due to the desolate starting point following the deindustrialization of the 1990s. The region's basically unaltered function as an extended workbench, particularly for the German export industry, does not provide for a perspective of independent growth. Observers expect that the corona crisis will additionally widen the gap between the North and the South. German trade surplus and Berlin's austerity dictates are the real reasons for this inequality.

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Courtesy of German Foreign Policy
Source: https://www.german-foreign-policy.com/news/detail/8443/
Publication date of original article: 17/11/2020
URL of this page : http://www.tlaxcala-int.org/article.asp?reference=30143

 

Tags: North-South Divide in UEropeRich and Poor in UEropeInequality in UErope
 

 
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