Growth in the Euro area continues to stagnate as Europe’s “lost decade” progresses slowly. Dan Steinbock discusses where Brussels and the European Central Bank went wrong, why the business environment is likely to remain dire, and what Europe’s leading companies can do to survive what the coming years hold in store.
European leaders like to say that the combined GDP of the European Union is almost $17.4 trillion, some $600 billion more than in the United States. The former translates to over 23 percent and the latter to over 22 percent of the world GDP. Together, the transatlantic economy accounts for almost half of the world economy.
The impression that is conveyed is that Europe’s economic potential exceeds that of the US. But Europe is not the Euro area. There are significant differences between the two in terms of corporate universe.
And it is the Euro area that is about to face the most severe challenges in its postwar history.