EU Responsible for 2019 Recession in Europe
The Institute of International Finance and Oxford Economics both independently looked at the difference between actual GDP growth and potential GDP growth in Europe, before and after the 2008 recession.
Following the 2008 crisis, the EU set rules limiting government deficits to no more than 3% of the GDP. This meant less money to go around Europe and therefore less economic growth. These policies caused Europe to lose about $1.3 trillion worth of total GDP output making it impossible to reach its size prior to the 2008 crash. And now this can lead Europe into another recession this year.
Experts warn that if Europe does fall into another recession that repeating their post 2008 policies could prove a big mistake.
