Is the current optimism about Europe justified?

There has been an increase in optimism about the EU in recent months as it has been forced to take more responsibility for its own security, has loosened fiscal policy and has benefited from having a far more stable policy environment than the US. However, while these are all positive developments, we think Europe will continue to be a less dynamic region than the US over the medium term. And with fiscal union still elusive, the euro-zone will remain vulnerable to country-level fiscal crises.

This report is part of our Future of Europe series. Read more analysis, explore the supporting data, and learn about our broader European coverage on the dedicated Future of Europe page.