How Bad Will European Economies Get? Key Challenges For Each Country
Mathijs van Dijk, Professor of Finance at the Rotterdam School of Management, Erasmus University, talks to Forbes about the major challenges facing the Dutch economy. He points out that the trading-oriented nation will be particularly susceptible to any slowdown in global trade, but also highlights two other major challenges facing the Dutch economy.
The first is whether the economic crisis will also turn into a financial crisis. “The Netherlands has a large financial sector and while it’s in better shape than before the 2008 global financial crisis a prolonged recession could undermine financial stability,” he says. “The second is whether the national crises in various European countries will result in another ‘euro crisis’ similar to the 2010-2012 Greek / European sovereign debt one. With government debt below 50% of GDP, the Netherlands is in a strong position to extend fiscal support to its businesses and households. But Italy, France, and Spain are in a thornier financial position, so the issue of European solidarity is firmly back on the table.”