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1/5/07

VEU politics: What to expect in 2007

FROM THE ECONOMIST INTELLIGENCE UNIT

"EU politics: What to expect in 2007
January 2nd 2007

Europe enters 2007 in a state of uncertainty. With presidential elections in France, the forthcoming departure of UK premier Tony Blair in the UK, coalition instability in Italy and Germany, and no government in Austria or the Netherlands, Europe faces a dearth of effective leaders. The EU itself will face another identity crisis, as it seeks either to re-introduce a truncated constitution to Europe's voters or goes for a less ambitious package of treaty reform. Meanwhile, domestic questions which plagued Europe in 2006--immigration, integration of minorities, and unemployment--will continue this year. Economically, the outlook is slightly better, with the EU27 likely to enjoy steady, if unspectacular growth. But many of the underlying economic shortcomings will persist, not least regarding debts, deficits, and labour market inflexibility."

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