State of things in Europe
Europe has recently faced a deep economic crisis which has led to the slowdown of the development of the region. Unemployment, slow economic growth and increasing external debt became the main European problems. The leaders of the European countries had to take measures in order to solve the issues they faced. Successful monetary politics lead by the European Central Bank, low prices on oil and more competitive Euro exchange rate help to overcome the consequences of the crisis.
McKiney has led a research which showed that 91% of the European respondents are ready to work longer hours in order to get better salaries and better public services, such as medicine and education.
For the moment, the volume of production per person in Europe is smaller if compared with 2008. In the majority of European countries the state debt exceeds the one set by the EC Stability and Growth Pact (60% of GDP). The level of unemployment growth and there is a deflation of nominal salaries in eight countries on the EU.
The changes
Big corporations are reluctant to spend much money and the governments try to decrease the deficit by means of reduction of the expenses and the increase of the taxes. The households buy less, the demand decreases and the uncertainty growth. In such a situation, the investments and the labour market suffer the most.
The developed strategy “Europe 2020” provides the ways how to overcome the crisis and to secure sustainable economic growth and development. In order to achieve it all Europe will have to enforce their economic management. Europe still counts for 25% of the global GDP and it is the home of the world leaders of the key social and economic indexes. As an example, the trade competitiveness of the German Baden-Wurttemberg, the strength of financial services in London, Dutch energetic effectiveness and French world-class transport infrastructure can be cited.
The main emphasize will be done on the innovations implementation in all the spheres of production and social life, support of the startups and other young companies, improvement of the quality of education in the region, state investments into the creation of new workplaces which will help to decrease unemployment, smart usage of the resources and regions differentiation, the globalization of the industry. Another important step is the implementation of the politics against poverty.
