The complexity of the problems in the euro area likely means that it will be some time before sufficient solutions are finally implemented. Hence, it is reasonable to expect that the eurozone may continue to fuel recurrent episodes of heightened risk aversion with global financial repercussions. Also, the euro area will continue to be a drag on the global economic recovery.
This feature of the U.S. economy explains, together with the relatively more unsatisfactory demographics of Europe, why European growth has been disappointing in comparison with the U.S. during the past decade. Let me elaborate a bit on the role of demographic developments for the euro area.