“…the region should pay attention to what happens in Europe, says Jeff Rosensweig, who teaches international business at Emory University.
“In America, we forget how close our ties are,” he says.
European firms bring investment to the U.S., which could dry up if Europe’s economy does poorly; Rosensweig also points out that U.S. companies get big profits from European subsidiaries. He says, there is “accumulating fear that Europe — one of the great potential engines of the world economy — is an engine that’s stuttering.”
The euro has already taken a hit against the dollar, making it more expensive for Europeans to travel. That could hurt another big European connection to the South — Florida tourism.
Many Europeans visit Disney World. Naples is very popular too — Europeans, drawn to its beautiful beaches, pumped $216 million into the local economy last year. JoNell Mody is with the convention and visitors bureau there.
“Well, they come and they stay longer, and they typically spend more money than a U.S. visitor,” Mody says. “And they also like to come when they have the bulk of their vacation time, which is the summer, which is our slower season. So they’re a very, very important part of helping us stabilize our tourism economy.”
Economists like Rosensweig want the European Central Bank to pull out all the stops — much like the Fed did during the U.S. recession — and help stabilize European markets.
“When Europe does well, we do well,” Rosensweig says. “And the reverse is true also. I don’t want either of us to sneeze, because the other one might catch cold.”