Euro’s Appeal Masks the Gathering Storm in Europe: Simon Johnson
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Is the economic and financial situation in Western Europe largely under control, as many prominent Europeans contend? Or is it poised to move into a new and more difficult phase?
The crisis feels unreal to some people in the same way that war felt phony to some Britons from September 1939 through spring 1940. In contrast to previous crises in emerging markets, Europe hasn’t moved precipitously toward collapse. But the main element that lets the European crisis unfold in slow motion -- the existence and appeal of the euro -- also explains why a great deal of volatility lies ahead. The storm is gathering.