Taking the Bull by the Horns- Debt and the Eurozone
Earlier this week, the European Commission proposed a series of measures to further strengthen and deepen the Economic and Monetary Union, to further integrate the EU and to avoid future crisis.
Concerned about Europe’s 18 million unemployed and the increase in debt on eurozone countries’ books since the financial crisis, the Commission is looking to avoid facing another sovereign debt crisis like the one triggered by Greece in 2010. They also proposed to set up special institutions that would monitor how competitive their economies are and how quickly wages can grow. Finally, the Commission proposed to merge euro zone representation at the International Monetary Fund into a single seat over the next 10 years to give the single currency area more clout. Read more here.
Since the global financial crisis, national debt across the eurozone has increased 20 percent, relative to economic output.
This has not gone without opposition or concern by member states.
What does this mean for Florida?
Europe faces a long road ahead but is taking steps to achieve recovery. Florida has very strong ties to the region as Europe is a significant source of Foreign Direct Investment, trade, real estate and tourism.
Florida exported $6.5 billion annually in goods to the EU (2012- 2014 average). Florida’s goods exports to the EU increased by 11 percent from 2012 to 2014. During this period, 10 percent of Florida’s total goods exports went to the EU.
Opportunities still remain, Germany and the UK are faring better than others. Europe continues to be challenged by other issues such as the current refugee crisis. Over the long term, Europe will continue to recover.