Once a reasonably level playing field, the single market is now lopsided. In the downturn to come, Spain and Italy will endure deeper recessions than Germany, leaving them even less financial muscle to help domestic businesses. Both the Spanish and Italian economies will contract by more than 9% this year, predicts the European Commission. By contrast, Germany’s gdp will fall by 6.5%. Not for the first time in the bloc’s history, the burden falls heaviest on those least able to bear it.
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