Things really aren’t looking good across the pond. Acton’s Director of Research, Samuel Gregg, has written quite a bit about the decline in Europe. His latest ‘Meanwhile, Europe is (Still) Burning’ in the American Spectator, discusses the inability or unwillingness of European governments to respond to economic trouble.
Two of the world’s large economies, France and Italy, are examples of this. In France, workforce unemployment is 11 percent, the government has engaged in possibly illegal activity by hiding the fact that it hasn’t cut its fiscal deficits, and it won’t actually get around to making these cuts until 2017. The situation in Italy is even worse: unemployment is at 12.6 percent, youth unemployment is at 42.9 percent, and the country is ranked as one of the worst in the world in terms of “labor market efficiency.”
Despite these problems, necessary changes are not being made:
Prime Minister Matteo Renzi is the latest Italian head of government to propose some marginal labor-market reforms. Alas, he too has discovered that Italy’s unions are essentially opposed to anything except the status quo. That’s why an estimated 1 million Italians marched in the streets on October 25, claiming that “fundamental rights” (which evidently don’t extend to Italians below 30) were being endangered.