The euro crisis has a political component. At issue is the EU’s democratic legitimacy—the need for citizens to feel they have more influence over EU decisions.
Will the next German government finally assume the role of Europe’s political leader? Substantial change in Germany’s approach is unlikely—unless the euro crisis gets even worse.
German Chancellor Angela Merkel will soon face parliamentary elections. There is much unfinished business that the next chancellor, be it Merkel or someone else, will have to manage.
Propelled by high unemployment, thousands of educated graduates are leaving Southern Europe for Germany. But it won't be enough to solve the country's long-term labor shortage.
If growth does not return to Europe in the next two years, the political situation will become more difficult.
Although the United States weathered the global recession relatively better than its European counterparts, it is not as strong as it looks and Europe’s long-term prospects are better than its current dismal performance suggests.
The Cypriot banking crisis reveals the danger of the euro crisis incapacitating Europe and the global economy more broadly.
Expectations for the U.S.-EU free trade agreement are dangerously high. Reaching a deal is likely to take longer and produce smaller gains than optimistic figures suggest.
The euro crisis shows that more integration, not less, is indispensable for moving Europe out of the danger zone and ensuring that it remains a beacon of peace and prosperity.
The euro crisis is far from over. The best possible outcome for Europe may be years of stagnation, as the danger of a renewed financial crisis is very real indeed.