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The EU's model essentially assumes that everyone should be a net exporter, which is clearly insane. It makes no sense at all to expect Portugal or Croatia to c

The EU's model essentially assumes that everyone should be a net exporter, which is clearly insane. It makes no sense at all to expect Portugal or Croatia to compete with the German industrial establishment. It would take massive infrastructure investment to make that even remotely plausible, even if it was a good idea - which it isn't. The reality is that the Southern countries are best suited for tourism, leisure, and agriculture, not industry, and so will never be competitive with FR, NL, and DE on those terms. But there are plenty of mid/long term opportunities for developing Internet and bio/med businesses and related primary research. The EU could do more to encourage those. (It's making some effort, but more is always possible.)

RobertoG 6y ago
>>"It makes no sense at all to expect Portugal or Croatia to compete with the German industrial establishment. It would take massive infrastructure investment to make that even remotely plausible, [..]" What would be necessary for competing with Germany, state investment and some protectionism of new industries, is forbidden inside the framework of the common market and the Euro anyway. The last thing a net exporter country want is real competition, and the more desirable thing they want is a not-borders market with a not de-valuable currency. It's funny (actually sad) how so many people think that it's, the less industrialized countries in the Euro, who have the better part of the deal.
KSteffensen 6y ago
You are right, but there is also the issue that a lot of the South Europe countries have structural problems (corruption, bureaucracy, poor infrastructure) that they seem to be unable or unwilling to address. This is also a factor that's holding them back.
- okokwhatever 6y ago
  There is such unhealthy paternalism in northern European countries based so exclusively on economics that I even find it amusing. Later, we are surprised by the statistics that speak of life expectancy or quality of life and in that case we dont remember southern Europe. And yes, as a citizen of Southern Europe I am constantly feeling insulted.

RobertoG 6y ago

>>"It makes no sense at all to expect Portugal or Croatia to compete with the German industrial establishment. It would take massive infrastructure investment to make that even remotely plausible, [..]" What would be necessary for competing with Germany, state investment and some protectionism of new industries, is forbidden inside the framework of the common market and the Euro anyway. The last thing a net exporter country want is real competition, and the more desirable thing they want is a not-borders market with a not de-valuable currency. It's funny (actually sad) how so many people think that it's, the less industrialized countries in the Euro, who have the better part of the deal.

KSteffensen 6y ago

You are right, but there is also the issue that a lot of the South Europe countries have structural problems (corruption, bureaucracy, poor infrastructure) that they seem to be unable or unwilling to address. This is also a factor that's holding them back.

okokwhatever 6y ago
There is such unhealthy paternalism in northern European countries based so exclusively on economics that I even find it amusing. Later, we are surprised by the statistics that speak of life expectancy or quality of life and in that case we dont remember southern Europe. And yes, as a citizen of Southern Europe I am constantly feeling insulted.