Economic tensions have been building within the euro area, driven by earlier widening differentials in competitiveness. Unit labour costs in Greece, for example, have risen by about 25 per cent relative to those in Germany since the euro came into existence. Government debt problems are also probably at their most acute in Europe.
The COVID-19 pandemic has presented the two sides of the coin in this issue. On one side, the vaccine nationalism particularly by western countries has shown the ugly face of the retreat from globalization. On the other side, the pandemic has emphasized the need for global cooperation and coordination as no one is safe until we are all safe.