It was foreseeable that Europe’s economic recovery would be delayed, however the lesson does not seem to have been learned by European governments

As the European recovery from the financial crisis continues to stall, Karim Maher Abadir and Gabriel Talmain assess the future prospects for European economies. Based on their own research agenda – which successfully predicted both the original recession and Europe’s delayed recovery – they argue that austerity policies are having a significant negative effect. While the situation in other countries, such as the United States, has improved, there is a very real threat that parts of Europe could experience a ‘triple-dip’ recession in 2013.