Leaders: Rumors of Europe’s weakness are greatly exaggerated
From a Russian point of view, Europe has long been portrayed as divided and weak, and Donald Trump and JD Vance are happy to agree with that picture. But pressure from outside is one thing. Europeans also seem to be close to self -criticism.
Self -confidence worsened last year when two reports, both written by former Italian premiere ministers, criticized the European market. The message: Europe has had low growth, struggles internally and is over -regulated. A weak continent on decis.
But rumors of Europe’s weakness are greatly exaggerated.
That’s right Growth in Europe has been worse than in the United States in recent decades. But as Arancha González Laya, Spain’s former Foreign Minister and Dean at Paris School of International Affairs, recently noted in Foreign Affairs Has the high value of the dollar caused US economic development to look relatively greater than it has been. For example, if you measure in purchasing power parity, instead of GDP in dollars, the gap is less.
González Laya also points out that the EU has what is needed to reverse the development. As stability and predictability – one of the most sought after for long -term investments. And while the US credit rating is now being downgraded as a result of the great government debt and the inability to handle it, the situation in many parts of Europe looks completely different. Countries such as Sweden and Germany open the wallet to renovate the defense.
There are thus reasons for Europeanimism.
Productivity is not lacking in the Union – on the other hand innovation. Anyone who has an idea has a hard time getting money for implementation without moving to the United States. Increased private investment can change that. And money exists, but one too small is invested in the stock exchange. Very Now speaks for that the EU is about to harmonize and expand the capital markets.
There are thus reasons for Europeanimism.
The United States is planning to remove Bank rules introduced after the 2008 financial crisis – the security of the European currency has been increased. The US President of the Supreme Court – on our continent legal security is steady. Trump creates uncertainty in world trade – the EU has in recent months concluded free trade agreements and started more.
As Harvard professor Kenneth Rogoff points out to DN (1/6), Trump makes more and more flee the dollar. They are looking for somewhere to turn to, the euro is a stable alternative.
Let’s not be naive: A swaying US risks creating surge waves over us. And the threats to Europe right now are greater than in many decades.
But poor self-confidence must not stop the 21st century from becoming a European century.
Read more:
DN’s editorial staff: Behind a terrifying exterior, Russia is a weakened land
Peter Wolodarski: The White House has become the world’s most powerful magic factory
