The Future of Europe and the Euro

{
  "authors": [
    "Uri Dadush"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "Western Europe",
    "United Kingdom",
    "France",
    "Germany",
    "North America"
  ],
  "topics": [
    "Economy"
  ]
}

In The Media

The Future of Europe and the Euro

As the Euro crisis continues to play out in Greece, troubled economies in Europe face years of slow growth and deflation unless European Union leaders overhaul fiscal and monetary policy.

By Uri Dadush

Published on Mar 8, 2010

Source: Bloomberg News

As the Euro crisis continues to play out in Greece and other European countries, the future of the euro is being called into question. Troubled economies face years of slow growth and deflation unless EU leaders overhaul fiscal and monetary policy.

Uri Dadush explains that Greece, Spain, Ireland, Italy, and Portugal face a “severe risk of prolonged depression.” Although fiscal policy adjustments will help the situation, “one part of the solution is to have more expansionary monetary policy” in other European nations. In order to restore competitiveness, troubled economies must reduce their real wages, but they also “need some growth in nominal GDP in order to deal with their rising debt burdens.” Regardless of any policy changes, however, Europe will likely see "slower growth...for several years."

About the Author

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Recent Work

Commentary
The Labors of Tsipras
- Uri Dadush
In The Media
Greece, Complacency, and the Euro
- Uri Dadush

Economy Western Europe United Kingdom France Germany North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Russia Eurasia Center

Commentary
Carnegie Politika
Stalled at the Front, Russia Seeks to Undermine Ukraine’s Economic Capacity
Russian strikes are weakening the economy sustaining Ukraine’s war effort. Closing the growing funding gap will require more European support and politically contentious reforms in Kyiv.
Balázs Jarábik
Commentary
Carnegie Politika
Who Is Funding Russia’s War in the 2027 Budget?
For every ruble allocated to social policy, health, and education in 2027, double that amount is earmarked for the army, the police, and the security services.
Alexandra Prokopenko
Commentary
Carnegie Politika
The Kremlin Can No Longer Postpone Hard Economic Decisions
Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.
Alexandra Prokopenko
Commentary
Carnegie Politika
Russia’s Elite Conflict Over Internet Restrictions Does Not Herald Regime Collapse
A much-discussed disagreement over internet restrictions in Russia was never an existential threat for Putin: It was about elite groups protecting their interests.
Alexandra Prokopenko
Commentary
Carnegie Politika
Could Migrants From India and Africa Solve Russia’s Labor Shortage?
The demands of the Kremlin’s war in Ukraine, demographic problems, and public hostility toward Central Asians mean Russia does not have enough workers.
Salavat Abylkalikov

More Work from Carnegie Russia Eurasia Center

Commentary

Carnegie Politika

Stalled at the Front, Russia Seeks to Undermine Ukraine’s Economic Capacity

Russian strikes are weakening the economy sustaining Ukraine’s war effort. Closing the growing funding gap will require more European support and politically contentious reforms in Kyiv.

Balázs Jarábik

Commentary

Carnegie Politika

Who Is Funding Russia’s War in the 2027 Budget?

For every ruble allocated to social policy, health, and education in 2027, double that amount is earmarked for the army, the police, and the security services.

Alexandra Prokopenko

Commentary

Carnegie Politika

The Kremlin Can No Longer Postpone Hard Economic Decisions

Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.

Alexandra Prokopenko

Commentary

Carnegie Politika

Russia’s Elite Conflict Over Internet Restrictions Does Not Herald Regime Collapse

A much-discussed disagreement over internet restrictions in Russia was never an existential threat for Putin: It was about elite groups protecting their interests.

Alexandra Prokopenko

Commentary

Carnegie Politika

Could Migrants From India and Africa Solve Russia’s Labor Shortage?

The demands of the Kremlin’s war in Ukraine, demographic problems, and public hostility toward Central Asians mean Russia does not have enough workers.

Salavat Abylkalikov