Think tank europe

The long shadow of the wall on Europe’s economy
24/11/2009
Author : Centre for European Policy Studies (CEPS - Belgium)
By Daniel Gros
 
To mark the 20th anniversary of the fall of the Berlin wall, CEPS Director Daniel Gros offers his views on the economic consequences of German unification for Europe’s economy. He argues that the way in which unification was handled led not only a boom in Germany, but also to upheaval in the European Monetary System, which essentially fell apart between 1992 and 1995. After 1995, the tables were turned and the traditional pattern returned whereby domestic demand became weak (and remained persistently so) in Germany, but domestic demand (both in terms of consumption and construction) took off in the rest of Europe. Thus, those who predicted that unification would drastically alter the balance of economic power in Europe seemed for a time vindicated, but twenty years later it appears that the status quo ante has been re-established.

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Friday, 10 February 2012
Europe's World - AUTUMN 2011 - #19
The Autumn 2011 issue of Europe's World is out!

We feel it's fair to say that few if any publications in the field of international relations and policy debate have grown as fast or widened their scope so remarkably as Europe's World.

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