The euro area economy is in a terrible mess

by Kevin Hjortshøj O’Rourke

Historians may wonder how it came to be introduced in the first place

The euro area economy is in a terrible mess.In December 2013 euro area GDP was still 3 percent lower than in the first quarter of 2008, in stark contrast with the United States, where GDP was 6 percent higher. GDP was 8 percent below its precrisis level in Ireland, 9 percent below in Italy, and 12 percent below in Greece. Euro area unemployment exceeds 12 percent—and is about 16 percent in Portugal, 17 percent in Cyprus, and 27 percent in Spain and Greece.