Europe needs a new development model

Abstract

With the relative decline of the European economy, the governments of Europe have used deficit spending to shield themselves from structural economic change. This deficit spending has proven unsustainable and European governments need to seriously re-evaluate public expenditure. There is a need to re-evaluate how public services such as health care and education are funded, and to better manage the Eurozone so as to avoid a second debt crisis. European states need to re-examine how public money is spent, and the current economic crisis could be the catalyst for the necessary structural changes.