Europe’s leaders have failed to solve the structural problems revealed by the crisis of 2008. Nor have they grappled with issues that have emerged in recent years. Examples include high public debt, the stock market bubble and distorted risk perceptions caused by the eurozone’s artificially low interest rates. For now, the situation has stabilized. Financial markets are headed into a period of high volatility, but panic has been averted. The question is whether this calm will last or if Europe's unfinished business will erupt into a full-blown crisis.

<i>This report is part of GIS’s “Global Trends” series, which aims to forecast big-picture scenarios that will shape the world th...

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Professor Enrico Colombatto
After years of recession and stagnation, most EU leaders were planning to grow their way out of the public-finance and banking crises
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