

Analysts Agree: EU Facing Recession
Given the high level of economic integration in Europe, it is unlikely that a recession will be confined to half the continent.
Given the high level of economic integration in Europe, it is unlikely that a recession will be confined to half the continent.
You don’t make promises you can’t keep. Nor do you keep an economic structure that can’t promise growth and prosperity.
Rather than sinking further into debt to maintain current, high levels of government spending, it is time for Europe’s leaders to fundamentally reconsider their economic and social policies. It is time for them to adopt an entirely new program for economic prosperity.
The euro itself is only part of the failure. An entire structure of government institutions, laws, and even constitutional provisions were erected around it in order to secure its success. It all looked impressive two decades ago; today, the structure itself, from the European Central Bank (ECB), to the so-called Stability and Growth Pact, is a package of sordid evidence that even under democratic governments, central economic planning is a bad idea.
President Macron wants the EU to reform budget rules to increase public-sector investments, which, he hopes, would lead to stronger economic growth and higher levels of employment. Macron’s vision is understandable, but his reforms are likely to defeat their own purpose.