There are four major current economic issues in Western Europe:
- The threat of terrorism and recent acts of terrorism reducing the number of tourists that visit Western European countries.
- Germany is in need of a steady labor force, as theirs is shrinking currently.
- The cost to buy oil and sell fuel has the potential to severely increase due to strong tension between Western European countries and countries in the Middle East (where most of the world's oil is imported from).
- Immigrants flowing in from Syria to Western European countries, in particular Germany, are hurting the economies of these countries because they are usually uneducated to no more than having a high school degree and are expensive to care for.
1. Terrorism
Unfortunately, Western Europe has been the location of a multitude of acts of terrorism this year. These attacks have been in France, Germany, and Belgium. Though in the last 3 months there has not been a major terrorist act, the threat is still very much present and is to be taken very seriously. This threat of a potential terrorist act is a major, yet reasonable turn-off towards tourists. Tourism is a very important part of any countries economy, but Western European countries in particular, given they have some of the best cultural and historical landmarks in the world. Some causes of terrorism are most of the time from culture and what they are taught, which drives them to commit acts of terrorism. The effect of terrorism is that the tourist population has significantly decreased and the economy has begun to struggle due to it.
Unfortunately, Western Europe has been the location of a multitude of acts of terrorism this year. These attacks have been in France, Germany, and Belgium. Though in the last 3 months there has not been a major terrorist act, the threat is still very much present and is to be taken very seriously. This threat of a potential terrorist act is a major, yet reasonable turn-off towards tourists. Tourism is a very important part of any countries economy, but Western European countries in particular, given they have some of the best cultural and historical landmarks in the world. Some causes of terrorism are most of the time from culture and what they are taught, which drives them to commit acts of terrorism. The effect of terrorism is that the tourist population has significantly decreased and the economy has begun to struggle due to it.
Photos of one of the worst terrorist attacks - Brussels airport in Belgium.
2. Germany's shrinking labor force
The major causes of Germany's decreasing labor force is, in fact, their economy that has run into hard times recently and their low fertility rate. The effects of the labor force dwindling is a worsening of the already not-so-great German economy. Germany is currently working on trying to bring their loss not just in labor force, but population in general back up to what it was before. With a the decrease in workers, this is causing a major dip in economic productivity. Though this is only an issue in Germany right now, it is expected to spread across Western Europe with countries in similar situations.
The major causes of Germany's decreasing labor force is, in fact, their economy that has run into hard times recently and their low fertility rate. The effects of the labor force dwindling is a worsening of the already not-so-great German economy. Germany is currently working on trying to bring their loss not just in labor force, but population in general back up to what it was before. With a the decrease in workers, this is causing a major dip in economic productivity. Though this is only an issue in Germany right now, it is expected to spread across Western Europe with countries in similar situations.
The above graph shows just how severe the decrease in labor force is and will continue to be.
3. Oil and tensions with the Middle East
The projected increase in oil/fuel prices in not just Western Europe, but the entire European continent, is caused by tension between Europe and the Middle East, and in effect the increased prices will lead to a severe economic decrease . As some of you may already know, the Middle East is the world's largest producer of oil and Europe is a major importer of their oil. Middle Eastern countries may raise the prices to buy oil, therefore causing the citizens of European countries to pay more for fuel, causing an all-around bad situation for European economy.
The projected increase in oil/fuel prices in not just Western Europe, but the entire European continent, is caused by tension between Europe and the Middle East, and in effect the increased prices will lead to a severe economic decrease . As some of you may already know, the Middle East is the world's largest producer of oil and Europe is a major importer of their oil. Middle Eastern countries may raise the prices to buy oil, therefore causing the citizens of European countries to pay more for fuel, causing an all-around bad situation for European economy.
As the price of oil increases, the cost of fuel will increase as well.
4. Immigrants
Because of civil war in Syria, thousands upon thousands of Syrian refugees are flocking to European countries. The most prominent destination in Western Europe for Syrians seeking refuge is Germany. According to Wikipedia, around 600,000 Syrian refugees have fled Syria and landed in Germany in hopes of starting a better life. This can be both good, as they have a new home, and bad, but the cons outweigh the pros. Focusing on the bad, these Syrian immigrants are usually either uneducated or have at the most a high school degree, including very few with college degrees. The effects of this can include overcrowding of urban areas due to Syrian refugees being jobless and in poverty, but could also pose a problem to low-educated German citizens, as they might have to compete for the same jobs. Also, having such a large number of these Syrian refugees costs the government a lot of money, projecting a total in the tens of millions of euros, possibly reaching up to 55 million euros! In conclusion, letting in so many Syrian refugees creates a big problem to the economy of not just Western European countries, but the continent as a whole.
Because of civil war in Syria, thousands upon thousands of Syrian refugees are flocking to European countries. The most prominent destination in Western Europe for Syrians seeking refuge is Germany. According to Wikipedia, around 600,000 Syrian refugees have fled Syria and landed in Germany in hopes of starting a better life. This can be both good, as they have a new home, and bad, but the cons outweigh the pros. Focusing on the bad, these Syrian immigrants are usually either uneducated or have at the most a high school degree, including very few with college degrees. The effects of this can include overcrowding of urban areas due to Syrian refugees being jobless and in poverty, but could also pose a problem to low-educated German citizens, as they might have to compete for the same jobs. Also, having such a large number of these Syrian refugees costs the government a lot of money, projecting a total in the tens of millions of euros, possibly reaching up to 55 million euros! In conclusion, letting in so many Syrian refugees creates a big problem to the economy of not just Western European countries, but the continent as a whole.