A bimonthly magazine on international affairs, edited in Germany's capital

Shifting Gears


The “convergence machine” was designed to build wealth within the continent while helping its lagging members catch up. Now, however, the same mechanisms are rendering the currency union less flexible.

Traders work at their desks in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany, December 16, 2015. REUTERS/Staff - RTX1YYZD


Europe has a problem. It is not just about economic “competitiveness”, and it is not a new one; it does not date from the sovereign debt crisis and the resulting end of cheap private-sector credit, which expanded in both Europe and the United States during the first decade of the 21st century. Those calamities have exposed the problem, while also making it harder to solve – but they did not create it. …

Read the complete article in the Berlin Policy Journal App – January/February 2016 issue.

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