Differences in unemployment rates between the countries are very large: in the Netherlands, the unemployment rate is slightly over 4%, compared to more than 20% in Spain as the average of the euro area is slightly under 10%. Europe will continue to see sluggish economic growth in the coming years, as most European countries have to reduce their public deficits.
Underlying the robust economic growth of the largest European economy, Germany, is the strong pull of exports, enabled by continued strong competitiveness, which has lifted business confidence indices to all-time highs. Despite expectations, Germany’s robust growth has not yet spilled over to private consumer demand, which has expanded only moderately.