The Decline and Fall Of Europe

In March 2000, EU leaders pledged to make the EU “the most competitive and dynamic knowledge-driven economy by 2010.” That goal could be unrealistic. As policymakers debate the rise of Asia and its challenge to the US, Fareed Zakaria, a journalist who specializes in international relations, suggests that the major story of the decade may well be Europe’s economic decline. If current trends persist, in 20 years the average US citizen will be twice as wealthy as the average European. Strikes and protests quickly thwart any attempts for economic reform by EU politicians. In terms of scientific advancements, Europe is no longer a player. Meanwhile, Europe’s workforce is aging and ongoing tensions dim any hopes of replenishing it through immigration. The author warns that European influence in the world is bound to diminish along with its economic strength, leading to a greater diffusion of power and more difficulty creating international “norms and rules of the road.” A decline in Europe could also prolong the US role as world superpower. Europe’s protectionist stance tends to prop up the dollar, because when investors search for alternatives, both the euro and yen represent economies that are “structurally weak.” A fondness for leisure could sap Europe’s vitality. – YaleGlobal