The European Economy in 2014

What is it about?

The article describes the performance of the European Economy in 2014. 2014 did not bring the long awaited recovery of Europe, although some encouraging signs did emerge. The paper also examines whether the gap between rich and poor member states narrowed or grew between 2004 and 2014, and finds mixed results: there is some evidence of economic convergence, however, some countries, especially Greece, and to a lesser extent Italy, Portugal and Hungary seem to have lost momentum.

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Why is it important?

The findings show that European policy makers need to put greater efforts into promoting structural reform to stimulate growth. The lack of unconditional economic convergence reveals that membership in the EU is not an automatic guarantee for prosperity.