The current issue of the Economist highlights the changing balance of economic power in Europe. European powers have been unevenly impacted by the global financial crisis. The article argues that a “new European pecking order has emerged, with statist France on top, corporatist Germany in the middle and poor old liberal Britain floored.”
While the downturn has “confirmed that the continental [economic] model has some strengths…the strengths that have made parts of continental Europe relatively resilient in recession could quickly emerge as weaknesses in a recovery.” After all, “the latest forecasts are that the United States and Britain could rebound from recession faster than most of continental Europe.”
Regardless of the underlying economic philosophies, strong revivals will rely on “pragmatism and efficiency.”
Image from the Economist.