Europe’s relative decline has begun

2011 was a not a good year for most of the European countries, including the United Kingdom, in terms of economic development. Their economy slowed down. What started in Greece and in the US a few months ago has spread like wild fire in these countries too.

The signs are not good and it is expected that things may take a downturn in 2012. Economists and leaders have warned of a tougher time ahead for the residents who for long gained from the economic development. Girding up to face the problem, many governments in Europe have taken a tough stand of austerity by cutting on public spending and other expenditures. Jobs are being lost in huge numbers.

Economic downturn means hard time for the common people. Also, it would have a long-term impact on many developmental projects. Many governments have started even talking about curtailing their defense budget. Even research work may also feel the heat.

Bailing out sick countries from such precarious situation is a big task for the leaders and economists.

Other than sick economy, Europe has other problems at hand and its old growing population. Earlier steps taken by the government to control population growth now has led to decaying population. To run its economy it needs young workforce.

Europe needs cooperation to overcome these hurdles. Will it succeed or like Japan will it learn to survive with the ailing economy? Is it the end of West domination? It is too early to jump to conclusion. But certainly the relative decline has sipped in when compared to China, India, Brazil and Turkey and growing economies.