The latest downswing in ME was induced by the bursting of the real estate bubble in the US and the subsequent global crisis in the financial markets. External drivers, such as oil price shocks, have often triggered slumps in ME. The major difference to past slumps lies in the fact that the risks have not yet faded out and global disequilibria are sustainable, creating a slightly gloomy outlook on the industry, which will be further discussed in Chapter 1. The long-term outlook for ME in the EU-27 is closely related to regional trends, above all to the degree.
