Mixed signals: What does this changing dynamic mean for Europe
Despite some wobbles, Europe and its investors have enjoyed an unparalleled period of political stability since the end of the Cold War. The stability was based on the consensus view of the political establishment that a European Union based on the four key principles of free movement of people, goods, services and capital would lead to prosperity. Furthermore, EU institutions like the European Court of Justice and the European Central Bank provided a predictable and stable environment, which many countries had not experienced until entering the EU and/or the European monetary union.
In any country, the government’s political achievements have to be communicated to its citizens constantly and consistently, in order to renew the “social contract” that exists. While there has clearly been a failure on the part of the EU to communicate its numerous achievements to the citizens of its 28 member states, there has also been any number of counterproductive communications from