HOW to grow the European economy? A question that has dominated European politics since the banking crisis. Speeches have been made, and solutions proffered by Francois Hollande, Angela Merkel, Jean-Claude Juncker and many others. The prescriptions differ, but one theme is more or less constant – trade.
European leaders have travelled far and wide promoting European trade, and lavish welcomes are afforded in Rome, Paris and London to the visiting delegations. This, of course, is natural – increasing European exports to the developing world will help to grow the economy at home.
However, one salient fact has been forgotten. Trade is a two-way street. Imports are also critical to a growing economy, and to a prospering relationship with new trading partners.
