World Economic Forum 2018: How economic choices help or hurt a divided European Union

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Europe

Delegates do not have far to look for an example given how politically and socially divided the European Union remains. But are the cracks created by the Euro crisis widening, or improving as a result of reforms and an economic rebound? CGTN's Jack Barton travelled across the bloc to find out.

In Europe 2009 will always be remembered as the start of the Euro crisis a crisis that almost tore the European Union apart.

CARSTEN BRZESKI, CHIEF ECONOMIST INTERNATIONAL NETHERLANDS GROUP IN GERMANY "What really caused the Eurozone crisis was the flaws in the institutional setup. "

The busts led to big bailouts by richer member states, though most of the money was spent servicing debt, while austerity hit hard.

CARSTEN BRZESKI, CHIEF ECONOMIST INTERNATIONAL NETHERLANDS GROUP IN GERMANY "So we saw unemployment rates due to slow growth and austerity going up to double digits in the case of Spain or Greece it went up to 25 percent."

At the height of the crisis Europe experiences a massive influx of immigrants from Africa and war-torn countries in the Middle East. The refugee crisis coupled to the economic crisis led to the rise of populist parties who've made big political gains in countries including Greece, France, Austria, the Netherlands and Hungary. Britain even held a referendum on leaving the EU.

SIMON FRENCH, CHIEF ECONOMIST PANMURE GORDON "52 percent of the UK public voted to leave for many different motivations the two principal ones though were concerns over migration to the UK economy and the impact that has had on public services and labor markets."

A stroll along a typical London high street reveals change is already underway. The owners of this teahouse say fewer foreigners are applying for jobs.

MICHAEL CAMP, CO-OWNER EDITH'S HOUSE "I assume there are people who would normally apply for those jobs who are thinking we don't know the certainty of being able to work and live in this country in terms of jobs and maybe these people have already left".

But, businesses relying on European products are feeling the pinch.

EILIDH FRASER, CO-OWNER NIDDLE NODDLE SHOP "Our prices are possibly going to have to go up. We know a lot of other shops boutiques businesses are in a lot of trouble already. "

JACK BARTON LONDON "The world trade organization has warned Brexit could lead to a "lost decade" of economic hardship, a fear echoed by the mayor of London who expects Britain's divorce from the EU to result if half a million lost jobs."

In Spain, the region of Catalonia also held an independence referendum, which was deemed illegal by Madrid. Wealthy Catalonia had long been forced to fund poorer regions of Spain. Resentment about this, and corruption in Madrid, has grown further since the start of the Euro crisis.

JORDI ALBERICH, PRESIDENT CIRCLE OF ECONOMY "We are a 40-year democracy. After 40 years we need to improve. In the case of Catalonia I guess the solution must take into account a better and more clear financing of the community."

There are signs of improvement. The E.U. has witnessed reform, though here at the World Economic Forum those reforms are often seen as Band-Aids rather than a cure.

JACK BARTON LONDON "Many analysts say the fundamental problems have not been fixed and if there is another economic shock Europe will likely find itself once again plunged into crisis. Jack Barton, CGTN at the World Economic Forum in Davos."