APRIL 2014 / NO. 2
TAGS: EUROPE, CRISIS, CHRONIC ILLNESS, EURO, UNEMPLOYMENT, IMD
Is Europe in crisis or is this more a question of chronic illness
“There is far too much negligence, failure and irresponsibility amongst the politicians in the EU”
The word crisis refers to a decisive moment or turning-point, which the euro never seems to reach. The single currency’s complaint is more like a chronic illness that is neither serious enough to kill the patient nor weak enough to be easily cured.
Employment in the public sector: Is this a new time-bomb?
Employment in the public sector has exploded during the past few years, according to research carried out by IMD. On average, a country should employ not more than 15% of their total workforce in the public sector. What does the IMD research show us for Europe?
Countries with less than 15%: Slovakia, Luxembourg, Germany, Portugal and Italy
Countries with between 15% and 25%: Spain, Belgium, Romania, Republic of Ireland, Czech Republic, United Kingdom, Slovenia, Greece, Austria
Countries with over 25%: Finland, Poland, Bulgaria, Hungary, Estonia, France, Lithuania, Denmark, Sweden and Norway
In 2004 the public sector in France represented 22% of total employment. In 2010 this had increased to 29%.
In difficult times governments are tempted to create jobs in the public sector so as to soften levels of unemployment. However, in the longer term this becomes a deadly sin.
“The fall in private investment in the EU between 2007 and 2011 was larger than any previous decline. History tells us that it takes an average of 5 years to recover from such a drop in private investment”, McKinsey Global Institute, December 2012
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