Good news for the Eurozone in data released today. The area grew 0.6 percent in the first quarter, faster than either the US or UK, and finally surpassed the level of GDP achieved before the global financial crisis (the US and UK did this 2-3 years ago).
Perhaps the most striking performance came from France, whose national data show quarterly year-on-year growth of 0.5 percent. This made me think. France may have sclerotic labour laws and a self-serving bureaucratic elite. But it is still a relatively grown-up country. France’s productivity record is way better than the UK’s. Its people at least live on the same planet as the Utopian economic dream by which they live. Unemployment remains grotesquely high, but growth has returned and Hollande can hold his head higher as he drives around Paris on his union-built scooter.
In Spain, too, growth has returned, despite even more grotesque unemployment following the country’s presumably acid-induced foray into the Anglo-Saxon never-never land of post-industrial, debt-fuelled, realestate driven, marginalist economic voodoo.
In sensible Germany, of course, with its revised labour laws, continued commitment to equitable growth, and its serious leader, life inevitably goes on in the sort of steady-state fashion that Anglo-Saxon economists fantasise about. Largely, I suppose, because they don’t have any Anglo-Saxon economists.
One can quite reasonably choose between any of these poisons. However, one poison is to be avoided. The Italian one. Not Anglo-Saxon-Spanish. Not Utopian French. Not sensible German. Instead, directionless decay. This, I suspect, is the price to be paid for not believing in principles. Or indeed, anything.
Here are current GDP levels of the different countries rebased to 100 in Q1 of 2008.
United States: 111
United Kingdom: 107