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Memo to Merkel- Post-election Germany and Europe

Daniela Schwarzer and Guntram Wolff

Policy Briefs from Bruegel

Abstract: Recent economic data points to the seeds of an economic recovery in the European Union. However, significant risks remain and bold policies are still needed. There are three central risks. Competitiveness adjustment is incomplete, casting doubt on the sustainability of public debt. Banking remains unstable and fragmented along national lines, resulting in unfavorable financial conditions, which further erode growth, job creation and competitiveness. Rising unemployment, especially among the young, is...

Date: 2013-09
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