Southern European economies are doing better than their northern counterparts, a reversal driven in part by austerity programs in formerly troubled markets.
Spain’s economy has grown 3.5% this year, and Greece 2.3%, compared to France’s 0.7% and Germany’s 0.2%. The north’s deficits are growing, albeit from a lower base, while the south’s are shrinking.
That success is driven partly by tourism — Greece and Cyprus are seeing construction booms — and efforts to attract investment and impose austerity, while the north is finding it politically difficult to reduce spending, The Wall Street Journal reported.
The UK government shelved plans to lower soaring disability benefits, while France has seen three governments fall in a year over unpopular budget cuts.
