Europe, the canary in the coal mine

Michael GESTRIN Chief Economist Investment Department, OECD [vc_btn title= »Download the article » style= »outline » color= »blue » align= »right » i_icon_fontawesome= »fa fa-file-pdf-o » add_icon= »true » link= »url:http%3A%2F%2Fprod.confrontations.org%2Fwp-content%2Fuploads%2F2016%2F03%2FRevue-107-Europe-the-canary-in-the-coal-mine-p30.pdf||target:%20_blank »] « The collapse of international investment flows to and from Europe is not just a question of being in the trough of a tough international investment cycle. Innovative political responses are needed. » This paper has examined international investment trends in Europe, both in terms of inward and outward international investment. The overarching conclusion is that investment to and from Europe collapsed in the wake of the global financial crisis that began in 2008 and is showing little sign of recovery. In order to gain further insight into this collapse, and with a view to determining the extent to which this is a specifically European challenge, the investment collapse was examined from a number of different perspectives, including Europe’s performance com- pared with other non-European industrialised countries, a breakdown between intra-and extra-EU