Now, at first, it might seem plausible to us that it is chiefly the people in the affected country that have to tighten their belts. But in the US states, 40 % – at most – of a shock to GDP is reflected in a fall in consumption growth. So there’s clearly another way. The rest of the impact is absorbed elsewhere.
In this context, a key lesson from the crisis for EU candidates and potential candidates is that membership of the EU and the euro area should not be seen as an end in itself, but rather as a means to an end, namely to enhance the welfare of our citizens.