Though the economic health of Western Europe is good, the Continent is bothered by a troublesome Achilles' heel. The difficulty is the failure of postwar Europe to generate enough investment capital either to meet its own needs or to enable it to play an overdue role in world financing. So inadequate are its capital markets that Europe has to depend heavily on the New York money market, thus contributing to the U.S. balance of payments deficit.
Last year foreign governments and companies borrowed a record $1.2 billion on Wall Street; Europe not only took a...
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