The Long Decline of Western Europe?
Subscribe to PS Digital
Access every new PS commentary, our entire On Point suite of subscriber-exclusive content – including Longer Reads, Insider Interviews, Big Picture/Big Question, and Say More – and the full PS archive.
It's election season in Germany, France and Italy, so the time for structural reforms is over.
Paradoxically, this could be good news for those who think that Europe should start contributing to world growth by expanding domestic demand. In fact, the current wisdom has it that the reason why France recently grew twice as fast as Germany is that French consumers have stopped worrying about social reforms.
As soon as French Finance Minister Nicolas Sarkozy decided to leave the government and start campaigning for the presidency, incumbent President Jacques Chirac abandoned all plans for reforms that might antagonize voters. So health reform or even partial pension reform must wait a few years.
To continue reading, register now.
Subscribe now for unlimited access to everything PS has to offer.
Subscribe
As a registered user, you can enjoy more PS content every month – for free.
Register
Already have an account? Log in