Publication

In light of the unprecedented turmoil in the euro-zone and the uncertainty over what the future holds, it is important to not only understand the current pressures on public finances but also the medium- to long-term factors which will affect the economic stability and sustainability of EU countries in future. The long-term competitiveness of European economies, their governance and their ability to carry out structural reforms to cope with long-term challenges will all influence whether countries have a sustainable economy in the long run. This will also determine the success or failure of the euro. To assess the economic sustainability of Europe’s economies, the EPC has developed an index to assess simultaneously the short-, medium- and long-term economic sustainability of EU countries relative to each other. This index is constructed using six domains: deficits, national debt, growth, competitiveness, governance/corruption and cost of ageing.