Monday, May 16, 2011

Is Europe Running on a Two-Speed Economy?

Even though Germany recently made export profits it hasn’t seen since the 1950s while Greece and Portugal continues to wallow in debt, is Europe running on a two-speed economy?

By: Ringo Bones

Even when plagued by crushing debt, Greece managed a GDP growth of 0.8% during the first quarter of 2011, while Portugal slips back 0.7%, it was Germany who achieved a rather recent economic miracle by managing a GDP growth of 1.5% during the first quarter of 2011 – a feat only managed after the full benefits of the Marshall Plan took effect during the 1950s. But is this the surest proof that Europe is running on a two-speed economy?

Ever since the Greek debt crisis became headline news, EU markets had since been bracing for a Greek debt restructuring since near the end of 2009 and many a euro-skeptic had been bemoaning for years that the only beneficiary of the single European currency are German industrialists. Could it be that Europe’s two-speed economy is more of a political rather than an economic construct?


Sans Ferdinand said...

I do agree with the euro-skeptics that the main beneficiary of the European single-currency are rich German industrialists.

Ringo said...

Strange, given the way German Chancellor Angela Merkel seems willing to do anything to save the euro, I now more often than not starting to perceive the euro as a 21st Century German currency.