The Problem with Europe's Economy | Economy of Europe | Econ

The EU stands as the world's second-largest #economy, housing both advanced economies excelling in competitiveness, innovation, and productivity, and those still catching up. Over the past two decades, a general trend has emerged: rapid economic growth in Central and Eastern European countries that joined the #EU, while big economies experienced sluggish growth rates.

The region's aging population, prioritizing free time and job security over higher earnings, has contributed to slow economic and productivity growth. Beyond these challenges, a more fundamental problem is affecting the overall economy, impacting its growth, innovation, and competitiveness. #economy #europe #recession

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[econYT]

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[andrecruz]

As a Portuguese citizen, I love how Portugal was neither included in the advanced economies of Europe, nor the ones who are catching up. Truly a weak and useless economy for europe.

[cloudyblaze]

This is not unique to Europe. It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.

[christianlibertarian]

Europe has made continual, small, but real, choices to slow economic growth. Germany's decisions to abandon nuclear power is an example, but there are hundreds of small restrictions that limit its growth.

[Riggsnic_co]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[ninavaughn]

We moved to Switzerland. My husband is a German Rocket Scientist and very knowledgeable about NASA since he worked in NASA headquarters. When we decided to return due to Winters, his coworkers wanted to start aerospace companies. The red tape was huge. He is great at starting business, but even with his experience, it was bad. His coworkers have become despondent because of the red tape. Pretty sad that so much talent can’t begin companies.

[nikovenag]

Europe and EU are two different things.. There is constant mixing of these 2 concepts in the documentary.

[Bono]

I think in these kind of topics it is important to at least mention the debt-to-GDP ratio differences. A HUGE reason for why the USA hasn't seen a decline in GDP yet the past few years is because the Fed has been pumping loads of money into the US Dollar system, which is of course a huge contribution to overall GDP growth and all other benefits that come with it(low unemployment, high population consumption, high investment). US debt-GDP ratio is now in the 120s, while Europes ratio is declining and now in the low 90s. That is a 30 percentage point difference. The fundamental reason for this is the huge bust Europes (Southern) economies saw after the 2008 crisis, which has resulted in being way more careful in fabricated boom cycles because of debt. Japan has had the same problem in the late 80s of course, and China is now living on the edge as their private debt/GDP ratio has risen sharply since the early 2010s. I guess the trade-off for governments is which risks the're willing to take to bring their economy to the next level. Boosting money supply and economic growth can have huge advantages, but the bust you make is way worse if the boom was caused by more debt.

[aarchiewaldron]

Yes, "Europe" must establish a Eurozone committee to create supranational government oversight groups to foster increased paperwork and controls over private industry and ensure survival of French and German companies.

[samdl]

in 2008 the EUR:USD was at 1.60. Today it's at 1.05. That's a 50% appreciation which explains 90% of the divergence in nominal economic growth.

[nuttawut]

In today's economy, assistance is critical if we are to survive. I was really hopeful about my investments this year but all my plans have been disoriented, I've been studying the stock market and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?

[_KapilBht]

Also over the top regulations - only EU can regulate an industry they don't have yet (AI).

[napobg]

Our economies are slowing down due to a significant number of reasons. One very important is the lack of energy independence. A nation like France has just slightly more expensive energy than the US but a nation like Germany has over double the cost per kwh.

Another reason is that we simply work less. The average Germany is only 67% as productive as the average American but when we count for the less hours worked the difference is narrowed significantly to a point where both countries are very comparable. The average American works for 1, 791 hours a year while the average Germany onn 1, 349. This obviously means that less products are being made which make the GDP statistics look worse than they actually are.

What's more the US simply has much larger digital economy than ours. A digital economy is the use of things like smart technologies, cloud computing, automation, E-commerce, Fintech and others. The US digital economy is by far the largest in the world with a size of 13.6 trillion USD. The biggest Digital economies in the EU is Germany with $2.54T, France with $1, 19T and Italy with $377B. The difference is staggering! Keep in mind that the EU population is over 100 million people larger than that of the US. The Americans simply use advanced technologies more so than we do both overall and per capita.

And obviously we come to innovation. The US is the tech hub of the world with companies like Google, Amazon, Apple, Microsoft, Meta, IBM, Intel, Nvidia, Oracle and so many more that are the de facto leaders in the global ttechnology push. Not only the US implements smarter technologies more so than we do but also they are the one making them.

While I think it is important to have healthier and less stressful way of life it is also just as critical to move forward as a society. We push new industrial policies and yet we rely on other countries like the US to make all the things for us. This makes us dependent on other countries for exactly that way of life we strive for. This means with one snap of a finger and everything would be gone!

[jaylenblount]

I love economics. More than any subject the way statistics and math directly correlated to global * and local variables. The political side of it. Everything! I feel like if you understand economics you understand the world and world history. It’s beautiful tbh atleast to me.

[JannyLuits]

People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?

[WolfetoneRebel]

Interesting that you show Ireland and the severe austerity that happened there as an example of why the European economy has slowed down. Austerity worked in Ireland and there has been huge growth here since 2013(measuring using modified GNI rather than GDP). There are signs of its results also starting to work in Spain and Greece. The countries slowing now are the ones that didn't have that massive clear out of inefficiency, bad capital, zombie businesses, etc.

[JoMunianga]

Every time I talked about system improvements to increase productivity in European companies I get feedback that an improving system will not help. It baffles me, that they have a strong aversion to investment

[PoisonelleMisty]

Let's talk about Europe's economy, shall we? Ah, Europe - land of delicious pastries, stunning architecture, and economic instability. It's like a soap opera that just can't decide on a plotline - one minute it's booming, the next it's busting.

I mean, have you ever tried to keep up with Europe's economy? It's like trying to follow a game of musical chairs where they keep adding more chairs and changing the music every five minutes. One minute it's Greece in the hot seat, then it's Italy, Spain, Portugal...it's like a never-ending game of economic Whac-A-Mole.

And let's not forget about the Eurozone - the club that everyone wants to join until they realize it's more like a dysfunctional family reunion. You've got Germany playing the role of the strict parent, France trying to keep the peace, and Greece in the corner sulking because they got stuck with the bill.

But hey, at least Europe has the Euro, right? It's like Monopoly money that's accepted in multiple countries - you can buy a croissant in Paris, a cappuccino in Rome, and maybe even a new BMW in Berlin. Who needs stability when you've got a currency that makes you feel like a jet-setting millionaire?

In the end, Europe's economy is like a rollercoaster ride - thrilling, terrifying, and always leaving you wondering if you're going to come out of it in one piece. So buckle up, folks, because the only thing certain about Europe's economy is that it's going to be one wild ride.

[thedude]

08:09 misleading point, the reshoring of RnD departments to the native country or seat country. is what caused this, US companies did this in US, and the german companies in Germany. and reduced the amount of RnD labs. now you have a US company producing in EU but patent is US based. also investment in RnD is better in US than in EU because you can reduce your overal tax burden by investing in RnD which you can't do in EU.

[paulmacknight]

It’s hilarious how people can tell lies using truths. The lower private spending is THE reason here. Austerity just means that these countries were not willing or able to substitute that lack of consumption with government spending. Which is actually a good thing, since that scenario would only increase inflation without doing anything to address Europe’s actual problems.