Europe's response to the changing economic environment

Research Paper (postgraduate) from the year 2014 in the subject Economics - International Economic Relations - language: English abstract: This research paper attempts to explain how and to what extent the European economy has changed in response to major events occurred over the last two decades. The analysis draws upon Darwin's theory of evolution to clarify why the adaptation process to the new economic environment has not been uniform across the Old Continent and notably why some countries have performed better than others. From an evolutionary perspective special attention is given to the Italian and German economies as the competitive gap between them has greatly widened in recent years raising serious concerns about the political and economic stability of the European Union. Investigating the reasons underlying these asymmetric results provides useful information about the characteristics that the new international economic environment has discarded through a process of natural selection and those which have proved to be successful by giving a competitive advantage in the struggle for existence.