Jasmine Chan’s blog post about the worst of the Euro crisis being over suggests that economic growth is the solution to combat the crisis. I agree that the conditions have improved in Europe, but there are many challenges that the Eurozone must overcome.
Growth prospects have not been promising as unemployment could remain high for years. The problem of unemployment must be solved before Europe’s economy can be restored. The unemployment rate across the eurozone is at a record high of 11.6%. The European Commission predicts that unemployment won’t start falling until 2014.
How would leaders implement solutions to stimulate economic growth? Possible actions involve breaking down barriers and the bureaucracy by reducing regulations and other costs for businesses. To prevent overspending, euro leaders should centralized authority over budgets. Structural reforms, which include breaking down job protections for established workers, could make the economy more productive in the long term. This helps ease the unemployment rate in the euro zone since it allows companies to hire and fire more easily.
Sources
Worst of European financial crisis appears over
ECB president warns on economic growth