Euro zone: A major transformation of the economy into services, for supply-side and demand-side reasons

In the euro zone there is currently a major transformation of the economy from industry in to services. It is the result of : Demand-side mechanisms: the global weakening of demand for capital goods and cars, which has a depressing effect on industry; the global stimulation of demand via the acceleration in real wages and the expansionary fiscal policy, which is stimulating services; Supply-side mechanisms: hiring difficulties for companies, which is having a marked impact on industry; the deterioration in cost competitiveness, which is reducing euro-zone industry’s market shares. So a combination of supply-side and demand-side mechanisms are now rapidly transforming the euro zone into a service economy.