Beggar thy neighbour
Germany's economy has regained its lost competitiveness, but it may come at the expense of Spain, where wages are rising fast
THE economy of the euro area is basking in a rare period of optimism. Growth forecasts ended the year higher than at the start of the year, the first time this has happened since 2000. The growth differential with America's economy has narrowed and is expected to contract further this year. But in an economy that comprises 13 diverse nations, such blessings are rarely unmixed. A particular concern is that the recent resurgence at the euro zone's core could portend a protracted slump at its periphery.
This article appeared in the Finance & economics section of the print edition under the headline “Beggar thy neighbour”
From the January 27th 2007 edition
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