Thursday 22 February 2018

The EU needs to take a big leap forward if the eurozone is to survive a downturn

One must seriously question whether, despite the hard lessons of the financial crisis, the EU has yet put in place institutions that would enable the euro to weather a future financial crisis in a democratically acceptable way. Photo: Bloomberg
One must seriously question whether, despite the hard lessons of the financial crisis, the EU has yet put in place institutions that would enable the euro to weather a future financial crisis in a democratically acceptable way. Photo: Bloomberg
John Bruton

John Bruton

Apart from Brexit, the other big European task facing our new Government must be fireproofing the euro against global financial turbulence.

One must seriously question whether, despite the hard lessons of the financial crisis, the EU has yet put in place institutions that would enable the euro to weather a future financial crisis in a democratically acceptable way.

The 2008 crisis was not a one-off event. Risks remain. Globally, overall debt has risen by $57 trillion (€50 trillion) since 2007. It was 269pc of GDP then and is now over 286pc. Global economic growth is forecast to be 2.9pc in 2016, the lowest rate since 2009.

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