The financial crisis triggered by Greece is contained, but at a huge cost. It will take several years to heal the balance sheets of large banks and for several countries to get their finances in line. Annual deficits are still averaging over 3% of GDP and debt is 85% of GDP. Neither is sustainable, meaning more austerity and unemployment. There is an emerging sharp divide between the prosperity of Northern and Southern Europe, with a build up of resentment over austerity imposed on the southern countries. Nationalist, anti-immigrant, anti-EU parties are gaining ground in several countries, particularly the U.K. (UKIP), France (National Front), the Netherlands (Party for Freedom), Hungary (Jobbik) and Italy (Five Star). No-one is suggesting yet that these will result in the break-up of the EU, but these are troubling trends. The EU is largely unable to function as an integrated entity in economic and foreign policy matters. The EU, while hugely successful in having grown to include almost the whole continent, still cannot speak with one voice on key issues, such as demonstrated by the responses to the financial crisis and Ukraine. It is clear that the EU requires a period of self-examination as to what it really is and can become. Many commentators believe that the EU has overreached in the speed of its growth and the scope of its ambition to become more than an economic union but a true political union. Populations in many member countries have drawn the line at really giving up meaningful political sovereignty. Also, Europe is going into a period of demographic decline, with its population expected to decline from 740 million today, to about 600 million in 2100. The population will also age markedly, with the median age increasing to over 50 by 2050. Not everyone sees this as a problem, but geopolitical history says that it is. On the other hand, Europe offers, without doubt, the best quality of life in the world. Almost every survey on quality of life puts European countries and cities at the top. European countries also consistently top the list of innovators. On climate change, Europe is moving far faster than others to bring on renewable energy, which will give it a big competitive advantage in the coming decades.
The financial crisis triggered by Greece is contained, but at a huge cost. It will take several years to heal the balance sheets of large banks and for several countries to get their finances in line. Annual deficits are still averaging over 3% of GDP and debt is 85% of GDP. Neither is sustainable, meaning more austerity and unemployment. There is an emerging sharp divide between the prosperity of Northern and Southern Europe, with a build up of resentment over austerity imposed on the southern countries. Nationalist, anti-immigrant, anti-EU parties are gaining ground in several countries, particularly the U.K. (UKIP), France (National Front), the Netherlands (Party for Freedom), Hungary (Jobbik) and Italy (Five Star). No-one is suggesting yet that these will result in the break-up of the EU, but these are troubling trends. The EU is largely unable to function as an integrated entity in economic and foreign policy matters. The EU, while hugely successful in having grown to include almost the whole continent, still cannot speak with one voice on key issues, such as demonstrated by the responses to the financial crisis and Ukraine. It is clear that the EU requires a period of self-examination as to what it really is and can become. Many commentators believe that the EU has overreached in the speed of its growth and the scope of its ambition to become more than an economic union but a true political union. Populations in many member countries have drawn the line at really giving up meaningful political sovereignty. Also, Europe is going into a period of demographic decline, with its population expected to decline from 740 million today, to about 600 million in 2100. The population will also age markedly, with the median age increasing to over 50 by 2050. Not everyone sees this as a problem, but geopolitical history says that it is. On the other hand, Europe offers, without doubt, the best quality of life in the world. Almost every survey on quality of life puts European countries and cities at the top. European countries also consistently top the list of innovators. On climate change, Europe is moving far faster than others to bring on renewable energy, which will give it a big competitive advantage in the coming decades.