Eurosclerosis
Encyclopedia
Eurosclerosis is a term coined in the 1970s and the early 1980s to describe both a political period and an economic pattern in Europe, alluding to the medical term sclerosis
. Economically, it was used to describe countries which had high unemployment
and slow job creation in spite of overall economic growth
, in contrast to what the United States experienced in the same period when economic expansion
was accompanied by high job growth. In its political context, the term "eurosclerosis" was used to describe a period with a perceived stagnation of European integration
. The slow pace of enlargement
, a perceived lack of democracy and economic problems caused that negative and apathetic attitudes to the European Economic Community
(EEC) were high. Wilfried Martens
, Prime Minister of Belgium from 1981 to 1992, states in his 2008 memoirs that the period of "eurosclerosis" was brought to an end by the 1986 Single European Act
which re-launched the drive to integration by framing the single market of the EEC.
As an economic term, "eurosclerosis" has later been used more broadly to refer to overall economic stagnation
.
The term was originally coined by German economist Herbert Giersch
to describe how overregulation and a generous welfare state
will undermine efficiency and job creation.
Sclerosis (medicine)
In medicine, sclerosis refers to the stiffening of a structure, usually caused by a replacement of the normal organ-specific tissue with connective tissue.Types include:...
. Economically, it was used to describe countries which had high unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
and slow job creation in spite of overall economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
, in contrast to what the United States experienced in the same period when economic expansion
Economic expansion
An economic expansion is an increase in the level of economic activity, and of the goods and services available in the market place. It is a period of economic growth as measured by a rise in real GDP.The explanation of such fluctuations in aggregate economic activity is one of the primary...
was accompanied by high job growth. In its political context, the term "eurosclerosis" was used to describe a period with a perceived stagnation of European integration
European integration
European integration is the process of industrial, political, legal, economic integration of states wholly or partially in Europe...
. The slow pace of enlargement
Enlargement of the European Union
The Enlargement of the European Union is the process of expanding the European Union through the accession of new member states. This process began with the Inner Six, who founded the European Coal and Steel Community in 1952...
, a perceived lack of democracy and economic problems caused that negative and apathetic attitudes to the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
(EEC) were high. Wilfried Martens
Wilfried Martens
Wilfried Martens is a Belgian politician. He was born in Sleidinge . Martens was the 44th Prime Minister of Belgium from 3 April 1979 to 6 April 1981 and 17 December 1981 to 7 March 1992....
, Prime Minister of Belgium from 1981 to 1992, states in his 2008 memoirs that the period of "eurosclerosis" was brought to an end by the 1986 Single European Act
Single European Act
The Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Single Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
which re-launched the drive to integration by framing the single market of the EEC.
As an economic term, "eurosclerosis" has later been used more broadly to refer to overall economic stagnation
Economic stagnation
Economic stagnation or economic immobilism, often called simply stagnation or immobilism, is a prolonged period of slow economic growth , usually accompanied by high unemployment. Under some definitions, "slow" means significantly slower than potential growth as estimated by experts in macroeconomics...
.
The term was originally coined by German economist Herbert Giersch
Herbert Giersch
Herbert Giersch was a German economist. He was one of the initial members of the German Council of Economic Experts in 1964, serving on the council until 1970, and also was president of the Kiel Institute for the World Economy 1969–1989...
to describe how overregulation and a generous welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
will undermine efficiency and job creation.