Europe's social model is unable to tackle the modern challenges of globalization, and has left Europe with gigantic problems. A high public debt, huge unfunded pension liabilities, a rapidly ageing population, 19 million unemployed, and an overall youth unemployment rate of 18%.
Persistent financial turmoil, the fallout from a deepening US downturn and resurgent oil prices are set to inflict a more severe slowdown on the European economy than previously expected, Brussels said yesterday.
Economists said that despite Brussels cutting its previous forecast of 2.2 per cent growth, its view remained too rosy. Independent analysts expect eurozone growth to drop to 1.6 per cent or less this year. STORY