Tackle the eurozone's original sin or watch the EU stagnate

On the eve of the EU elections, economist Guido Cozzi lays out the rules for saving the eurozone

Flags outside European Parliament
(Image credit: FREDERICK FLORIN/AFP/Getty Images)

What do the latest growth figures teach us about Europe? First, the overall growth performance of the European Union is worse and more fragmented than expected. GDP in vulnerable countries such as Greece and Italy has declined, shrinking by 1.1 per cent and 0.5 per cent respectively since the first quarter of 2013. With growth essential for stability in the politically and socially torn EU, these figures are particularly worrying.

It is also apparent that the eurozone is performing worse than the rest of the EU. The EU’s GDP has grown by 1.4 per cent over the past year, while those countries in the euro have grown at just 0.9 per cent. Even the much-envied eurozone champion Germany is lagging behind the UK’s current growth rate.

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