Unemployment
A major cause of the economic regression in Western Europe has been due to unemployment, especially within France. The unemployment rate in France has reached 9.9% as of 2016, and this percentage impacts the economy greatly. A greater unemployment means that people spend less money, which slows economic growth. After an economic recession many jobs cut workers, and the economy is growing to accommodate those workers.
A major cause of the economic regression in Western Europe has been due to unemployment, especially within France. The unemployment rate in France has reached 9.9% as of 2016, and this percentage impacts the economy greatly. A greater unemployment means that people spend less money, which slows economic growth. After an economic recession many jobs cut workers, and the economy is growing to accommodate those workers.
Federal Statistical Office. French Unemployment Rate. Digital image. French Unemployment Rate. Trading Economics, 2016. Web. 27 Nov. 2016. <http://www.tradingeconomics.com/france/unemployment-rate>.
Statista 2016. France: Unemployment Rate from 2010-2020. Digital image. The Statistics Portal. Statista, 2016. Web. 27 Nov. 2016. <https://www.statista.com/statistics/263697/unemployment-rate-in-france/>.
German Industry
A large part of the German economy is its industry and exports. Its major consumer, China, as well as other countries have decreased the amount of goods they buy from Germany. Their economy is slowly deceasing as their main source of revenue is diminished. Germany is the largest economy in Europe, and without a growing German economy, the other economies of countries in this sub region are affected.
A large part of the German economy is its industry and exports. Its major consumer, China, as well as other countries have decreased the amount of goods they buy from Germany. Their economy is slowly deceasing as their main source of revenue is diminished. Germany is the largest economy in Europe, and without a growing German economy, the other economies of countries in this sub region are affected.
Federal Statistical Office. German GDP Growth Rate. Digital image. German GDP Growth Rate. Trading Economics, 2016. Web. 27 Nov. 2016. http://www.tradingeconomics.com/germany/gdp-growth
Tax Havens
When countries, especially small countries like Luxembourg are tax havens, they care more about foreign investors than they do their citizens, and it leads to less spending on things like education or infrastructure, and more with policies involving foreign investments. Since a majority of the economy is reliant on foreign businesses, a lot of the revenue flows out of the country. By being a tax haven, countries become more prone to tax fraud and corruption. Many countries in Western Europe are tax havens, and these issues are becoming more widespread.
When countries, especially small countries like Luxembourg are tax havens, they care more about foreign investors than they do their citizens, and it leads to less spending on things like education or infrastructure, and more with policies involving foreign investments. Since a majority of the economy is reliant on foreign businesses, a lot of the revenue flows out of the country. By being a tax haven, countries become more prone to tax fraud and corruption. Many countries in Western Europe are tax havens, and these issues are becoming more widespread.
27 Nov. 2016. <http://www.economist.com/news/business/21672232-europes-corporate-tax-havens-say-they-are-reforming-up-point-still-slipping-net>.