European Union is facing backlash after a struggling year in economic growth. Both European Central Bank President Christine Lagarde and ECB member and head of Bundesbank Joachim Nagel expressed their concerns for EU moving forward. With the European Union underperforming and falling behind other countries when it comes to generate new economic growth and manufacturing – the main areas to be affected and see less spending is welfare and defence.
Christine Lagarde mentioned that EU ‘’won’t be able to generate the wealth required for the increasing spending to guarantee security, combat climate change and protect the environment.’’
Another topic that was also mentioned is how the world is becoming more divided into blocks, that can create a trade war. For the European Union it would be vital to continue offering free trade across the world to improve their economic situation and it will be vital to see how upcoming US tariffs will affect the European exports to the US.
