The Impact Of European Economies On The European Economy

2620 Words Sep 4th, 2014 11 Pages
To address the question as to how financially interlinked is Europe is to ask the extent to which what happens in one European country has a financial effect on another European country. Through this essay GDP will be used as the primary measure of the strength of an economy. Some may argue that this is not the sole measure: there are many other factors, which come into the strength of an economy such as unemployment, government spending and consumption. Furthermore the statistics surrounding GDP may themselves be inaccurate and hold distortions since it doesn’t take into account distribution of income and hidden economies such as the black market. However, it is easiest to look primarily at GDP and seek to examine the extent to which European economies’ GDP move in harness. This essay will also look at the reasons behind similarities and differences in individual European GDP movements and the efforts of European authorities to encourage Europe to be more financially interlinked.

It’s broadly assumed that the European economies tends to move in the same direction, be that due to being geographically or politically linked. Commentators tend to comment on Europe, US and Asia as major trading blocs with the assumption that Europe is interlinked. International companies will group together the European results and see them as one when assessing a year’s performance. While these approaches may be being deployed for convenience, those adopting this technique generally move on…
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