Economy of Europe

Countries as ranked by per capita GDP

Countries as ranked by per capita GDP

• Major producer and exporter of steel until 1960s.

• Banking and financial services now the most important economic activity.

• Highest per capita GDP in the world. ($81,800)

The European Investment Bank

An old steel mill in Luxumbourg

Countries as ranked by per capita GDP

• Secure and secret banking.

• Highly skilled workforce.

• Known for precision made tools, machines, electronics.

• Tourism.

Countries as ranked by per capita GDP

• Timber, hydropower, iron ore major natural resources.

• Highly skilled workforce.

• Ranked highest in world on “business creativity.”

• Export-based economy.

The Swedish company Saab makes jet engines and hot cars.

Polders in the NetherlandsLand reclaimed from the seaLand reclaimed from the sea

The climate of France is ideal for agriculture. (Marine west coast climate = plenty of rain.)

French farmers are known for using advanced techniques. (mixed farming, crop rotation)

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Acid Acid RainRain: Results of : Results of unchecked industrial emissionsunchecked industrial emissions

Air pollution and destruction of forestsAir pollution and destruction of forests..

Acid Rain has damaged many Acid Rain has damaged many historical statues and buildingshistorical statues and buildings..

Areas threatened by air and water Areas threatened by air and water pollution: pollution:

Germany (Black Forest)Germany (Black Forest)Venice, ItalyVenice, ItalyRhine, Danube, and Seine RiversRhine, Danube, and Seine Rivers

Venice is suffering from severe water pollution and it is sinking into the Adriatic.

Venice is suffering from severe water pollution and it is sinking into the Adriatic.

Boats are part of everyday life in Venice, Italy.

Postal boat Police boat

Hearse boatConstruction boat

Venice is suffering from severe water pollution and it is sinking into the Adriatic.

Venice, Italy: beautiful but polluted.

The ChunnelA tA tunnelunnel under the English under the English ChChannelannel

• A tunnel boring machine.

From Dover England to Calais FranceFrom Dover England to Calais FranceThe 31.4 mile long tunnel unites Britain with The 31.4 mile long tunnel unites Britain with

continental Europe.continental Europe.

The Chunnel

There are two train tunnels and a service tunnel.

The tunnel is in the layer of rock under the sea.

High speed trains move people and goods from Britain to FranceBritain to France

High speed trains move people and goods from Britain to FranceBritain to France

Mountain Regions:Tourism, recreation(skiing), and Tourism, recreation(skiing), and

mineral resources.mineral resources.

Rivers and canals serve as major transportation links.

Oil reserves in the North Sea.

Economic Characteristics of European Nations

• Well-educated workforce

• Industrial and technological societies

• High-tech agriculture

• Well-developed infrastructure

• Fertile soils

Demographics of Developed Countries:1. High Per Capita GDPHigh Per Capita GDP2. High Life ExpectancyHigh Life Expectancy3. Low Population Growth RateLow Population Growth Rate4. Low Infant MortalityLow Infant Mortality5. Low % of population under the age of 15Low % of population under the age of 156. High Literacy RateHigh Literacy Rate

Large role of governments in the economy: SocialismSocialism

Sweden and Denmark

Differences in Western vs. Eastern European economic development

Differences in Western vs. Eastern European economic development

• Due to the failure of Due to the failure of communist economic systemscommunist economic systems

• Communism is now being replaced with capitalism in eastern Europe

• Eastern European economies still lag behind.

Eastern European countries are making a transition from a communist system to a capitalist economy. Example: Poland

Black, fertile soil that produces high crop yields.

The European Union An attempt to rebuild Europe economically through cooperation An attempt to rebuild Europe economically through cooperation

rather than competition. rather than competition.

* Lower trade barriers, free borders, etc.* Lower trade barriers, free borders, etc.* A political/economic force* A political/economic force* A “United States of Europe.”* A “United States of Europe.”

The European Union

The European Union

The Strasbourg Parliament meets in Germany.

The European Union

The European Court of Justice in Luxembourg is the highest authority on E.U. laws.

The European Union

The EuroEuro is the common currency of all E.U. nations.

The European Union • Currently the European Union is under stress.

• The economies of Greece and Spain have been damaged by excessive government spending.

• Other countries – such as Germany – will need to “bail them out.”