Mario Draghi, the former president of the European Central Bank, had promised Europe a “Slow agony” If she did nothing to resume her economic destiny in hand. At this stage, even if Donald Trump's return to the White House accelerates their reflection on the need to invest, the twenty-seven have not yet done anything significant to escape this dark prognosis. In this context, the latest forecasts of the European Commission, published Monday, May 19, show a European Union (EU) where growth remains desperately sluggish.
The Community Executive has revised its projections downwards and now tables on an increase in gross domestic product (GDP) of 0.9 % in 2025 and 1.4 % in 2026 for the countries of the euro zone. The reflux of inflation, which should go below 2 % (1.7 % in the euro zone in 2026) thanks to the drop in energy prices and the strengthening of the euro, but also the good performance of the job market and domestic consumption should make it possible to avoid the worst.
After the Pandemic of COVID-19 and the outbreak of energy prices in the wake of the invasion of Ukraine by Russia, Brussels now invokes the trade war of Donald Trump to explain the low European performances. “The risks are downward oriented”adds Valdis Dombrovskis, the economy commissioner. In fact, the experts of the Commission worked from the current situation, where Washington increased its customs duties to 25 % on steel, aluminum and cars and 10 % on a wide range of products.
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Source: Lemonde