studentsineurope

Update on the economic crisis in Europe

Whether it’s called “el crisis” in Spain, “die krise” in Germany, or “a válság” in Hungary, the global economic crisis has impacted Europe as much as it has the rest of the world.  Now, at least according the official line, the continent has emerged from the recession.  The Washington Post reported recently that the euro-zone economy – made up of 16 nations – showed slight growth in the last quarter – the technical benchmark for the end of a recession.  However, the gains are unevenly distributed.  Germany and France are leading the way, but Spain, Ireland, and Hungary are expected to remain in crisis for much longer.  In Spain, according to AFP, some desperate people have resorted to selling hair for money.  The crisis has sorely tested European unity and if some nations stay mired in a recession while others surge ahead, it could strain future attempts at cooperation among euro-zone countries.

The economic news can mean many things to young travelers in Europe.  Lagging economies may push prices down (especially in tourism-oriented places like Spain), but if the European recovery outpaces the American one (the real existence of which many still doubt, despite official statistics and bureaucratic proclamations), the dollar could be further devalued against the euro, raising the costs for, well, everything (at least for American students.)  And of course, in today’s perilously interlocking global economy, major economic changes in Europe can easily impact economic conditions in the U.S.  Our generation is facing some of the worst unemployment this age demographic has encountered in decades, and those who are trying to save money to travel are facing more obstacles.  The recent improvements might mean good news, but the outlook is still, above all, uncertain.