Buba report says weak growth in EU 'real' problem
According to the report, general weak economic growth in the EU, rather than discrepancy in GDP growth rates, is likely the "real reason for widespread discontent with the economic development in the euro zone".
"Current growth discrepancies are obviously seen as especially grave because some countries that have low average growth rates are at times on the verge of drifting into recession," Buba said.
In the US, diverging growth rates lead to "quick and comprehensive" migration that eases wage pressures in prospering regions and relieves labour markets in regions that are "lagging behind".
In the euro zone, however, migration is not as common due to language barriers and a "generally weak inclination towards mobility".
"The oil price hike has so far had a relatively small effect on core inflation in these three economic regions," Buba said.
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