The EU, already significantly poorer than the US, digs deeper.
If the European Union were a state in the USA it would belong to the poorest group of states.
France, Italy, Great Britain and Germany have lower GDP per capita than all but four of the states in the United States.
In fact, GDP per capita is lower in the vast majority of the EU-countries (EU15) than in most of the individual American states. This puts Europeans at a level of prosperity on par with states such as Arkansas, Mississippi and West Virginia.
Since then, EU growth has lagged about 1.5% behind the US, and the EU has admitted another 10 much poorer nations. So it may by now have slipped behind Mississippi, the poorest state. In case it hasn’t, the EU today revealed two new weapons:
The Strong Euro
Brussels sees this as a sign of EU virility, but in consequence:
US exports of capital goods grew by 1.0 billion dollars from December to January… The US deficit with the European Union slumped 28 percent to 6.5 billion dollars.
European leaders today launched a green revolution, after agreeing to take on ambitious climate change goals including legally-binding targets for switching to renewable energy sources such as wind, wave and solar power.
The landmark deal, which came at the end of an EU summit in Brussels, saw leaders pledge to cut overall levels of greenhouse gas emissions by 20 per cent from 1990 levels by the year 2020 – vowing to boost the figure to 30 per cent if the rest of the developed world does the same.
So Europeans will now pay more for everything that uses energy, from transportation to housing, and their economies will keep heading south.