UK Only Article:
Beware the cult of Xi
Europe’s weak economic recovery is worryingly dependent on exports
EUROPE is hardly bursting with optimism. Threats of different kinds, from coping with refugees to the prospect of “Brexit”, weigh on continental minds. For the first time in years, however, the euro zone’s economy is not foremost among the worries. It grew in 2015, for a second consecutive year; unemployment rates around the periphery are falling; and “Grexit” has again been averted. Yet some caution is in order. The euro-zone economy remains heavily dependent on exports for its growth. That is both an indicator of the incomplete nature of Europe’s recovery and a dangerous vulnerability.
Europe’s economic crisis was a stew with many ingredients, from spendthrift governments to inadequate safeguards in the banking system. The stock in which it all simmered, however, consisted of big imbalances in trade and capital flows. Economic integration encouraged high-saving households in slow-growing northern …
via Economic Crisis http://ift.tt/1VVnCn7