Summary

Chapter 1 of the report discusses the immediate macro economic outlook for the global economy, with a particular focus on the European situation. Chapter 2 focuses on the major macroeconomic imbalances within the euro area and argues that a substantial devaluation in the crisis economies is needed to achieve a sustainable solution. Against a background of surging unemployment rates in many European countries in recent years, Chapter 3 analyses Euro pean labour markets, with a special focus on youth unemployment. Finally, Chapter 4 looks at the situation in Europe from across the pond to determine whether Europe can learn any lessons from the historical development of a fiscal union in the United States.