Faraway, So Close: How the Euro Crisis Affects Australia

Europe’s economic crisis has been shaking financial markets for the past three years. Countries like Greece, Ireland, Portugal, Spain and even Italy are in danger of defaulting on their debt. The continent’s banking system looks fragile. A whole generation of young Europeans faces an uncertain future with worsening employment prospects. What does this mean for Australia? Does Europe’s crisis have the potential to derail the Australian economy? How can the European crisis spread to Australia? And are there opportunities for Australia amid the European catastrophe?
This report takes a sober look at a faraway crisis and its local implications for Australia.

Oliver Marc Hartwich is a Research Fellow with the Economics Program at The Centre for Independent Studies.