Europe’s Prospects Depend On More Than Beating the Pandemic

A resurgence of the pandemic is threatening to tip the eurozone into a double-dip recession, cutting short the recovery that took shape from the middle of this year, the Financial Times reported. Few if any economists expect a slump as severe as the 11.8 per cent quarter-on-quarter contraction recorded between April and June. But services, which account for about three-quarters of economic activity in the 19-nation eurozone, are bearing the brunt of the tight restrictions on people’s movement that governments are reimposing in an effort to control Covid-19. A larger, long-term question for the eurozone is whether the pandemic will turn out to be the moment when political leaders finally take decisive steps to address the vulnerabilities of the monetary union created in 1999. Read more