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Henry Goecke IW-Trends No. 4 25. December 2013 Europe is Drifting Apart

Is this the End of Convergence in the Real Economy?

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Europe is Drifting Apart
Henry Goecke IW-Trends No. 4 25. December 2013

Europe is Drifting Apart

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

Is this the End of Convergence in the Real Economy?

When the European integration process started in the 1950s, one of its aims was to bring the strength of the participating nations’ economies more closely into line. Overall, the last six decades have seen both an absolute and a relative rise in the per capita incomes of the erstwhile poorer countries. However, the convergence process in individual countries has been neither even nor continuous. Indeed, largely due to the economic crisis that broke in 2008 this trend has been reversed and the same economies are now diverging again. Recent figures show that the crisis-stricken countries of southern Europe have fallen a good way behind. Nor is convergence likely to resume in the near future. Bringing Europe’s economies closer together again will require economic policy reforms on the part of individual countries, whereby the EU also has at its disposal instruments which could make an important contribution.

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Europe is Drifting Apart
Henry Goecke IW-Trends No. 4 25. December 2013

Henry Goecke: Europa driftet auseinander – Ist dies das Ende der realwirt-schaftlichen Konvergenz?

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

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Samina Sultan at IEP@BU Policy Brief External Publication 17. April 2024

Not so Different?: Dependency of the German and Italian Industry on China Intermediate Inputs

On average the German and Italian industry display a very similar intermediate input dependence on China, whether accounting for domestic inputs or not.

IW

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Jürgen Matthes in Intereconomics External Publication 9. April 2024

China’s Trade Surplus – Implications for the World and for Europe

China’s merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities.

IW

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