Economic Insight - 1st Feb 2010
Start date: 01/02/2010
In the last Perspective we discussed how the eurozone economies were diverging. Specifically we discussed the divergence between the peripheral “Club Med” countries – Greece, Spain, Portugal, and possibly Ireland and Italy – and the core economies centring on Germany, France and the Benelux countries. We concluded that the peripheral countries were currently in a policy trap and the consequences would be painful however they tried to release themselves from this trap.1