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The power struggle between the USA and China is also perceptible in these parts; exports are declining, companies invest less. The German Economic Institute thus adjusts its economic forecast downward.
The changing course of US trade policy since the election of Donald Trump has strengthened the image of free trade in the EU. However, almost 40 percent of EU citizens also support protectionism. This is puzzling, yet lacking knowledge is an important explanation, a new IW study shows. An information campaign is inevitable in order to secure the sustainability of EU Trade policy.
For historical reasons, Europe has long resided in the strategic shadow of the United States, which itself has underwritten decades of globalization and rapidly expanding prosperity. But the global balance of power is rapidly shifting, leaving Europe increasingly exposed.
Before the economic crisis, European regions with low economic output per inhabitant grew faster than the wealthier ones. The living conditions on the continent became more similar. Since 2010, however, the process of catching-up has been stopped.
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