The high cost of a strong euro currency

Brussels

EUROPE is experiencing a "good" crisis. Despite the damage wrought by the Covid-19 pandemic and ensuing recession, its response has minimised the damage and bolstered confidence in the economy. Yet even this positive news carries risks.

The European Union has done a much better job of curbing Covid-19 infections and fatalities than, say, the United States. Moreover, its economic-policy response has been much better than expected, with all member states taking strong action to entice firms not to lay off workers. As a result, unemployment has barely risen.