The Growth Of The Eurozone Essay

Decent Essays

Looking at the development of the Eurozone almost 15 years after the Euro introduction, the gross domestic product (GDP) of the Eurozone has only minimally (0.6%) increased in 2015 compared to 2007. Further, a pattern of divergence can be observed across the Eurozone. There are some countries which have experienced modest growth (i.e. Germany) and others that show a rather constant decline (i.e. Greece). The overall productivity has developed worse than expected, and is with an increase of only 0.6% from 2007 to 2015 fairly low. Another important indicator of the well-being of a country is the standard of living, measured by GDP per capita. This figure has been decreasing by almost 2% in the last 7 years. In terms of economic security, population still suffers under the crisis, shown in the increasing rates of unemployment and the decrease in government spending especially for social expenditures (i.e. Greece: 22% by 2015). A high standard of living also implicates a certain “connectedness” with family members, through the high youth unemployment rates in Spain, Italy etc. many young people leave their families in order to seek better opportunities in other countries (Stiglitz, 2016). Unemployment was on average 11% across the Eurozone and youth unemployment is levelled at twice that size, which will have enduring/long-lasting effects on future income and pension scheme. … “The euro has deepened the divide (…) weaker countries are becoming weaker and stronger are becoming

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