"In the aftermath of the crisis, Europe is becoming more polarised in terms of employment, competitiveness and industrial specialisation. A “German-centred core”–which maintained employment and production–has emerged, contrasted by a “Southern periphery”, where major economic losses have occurred. Such geographical divergence is associated with a further polarisation in terms of skills. A new European industrial policy is needed to reverse this polarisation process and its dangerous implications for trade balances and cohesion."

Support: Digital