Why Europe's in Better Shape Than the U.S.
Furlough schemes have kept the jobless rate in check, although the euro zone now needs to make sure it isn’t propping up zombie companies.
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Photographer: BERTRAND GUAY/AFPAfter the great recession, the American economy rebounded faster and stronger than the euro zone, raising doubts over the effectiveness of the “European social model.” As Europe emerges from the first wave of the Covid-19 epidemic in better shape than the U.S., its combination of welfare states and strong public health systems suddenly seems appealing again.
The U.S. is still struggling to contain outbreaks in several states from Texas to Florida, whose health-care systems are being pushed to the brink. The federal government has failed to articulate a unified message for the country, as state governors have taken conflicting decisions on the length and strictness of their lockdowns.