0:34 28 March 2024
Experts Warn of Looming Fiscal Crisis in Europe
Experts in Brussels caution that Europe is on the brink of a fiscal crisis due to declining productivity and political deadlock, exacerbated by technological change and geopolitical tensions. The think tank Eurointelligence highlights disturbing signals from Italy, France, and Germany, where excessive budget deficits pose threats to fiscal and financial stability.
The report underscores the urgent need for solutions like a common fiscal capacity and joint defense procurement, yet these remain elusive amidst diverging fiscal policies. France and Italy struggle with stagnant economic growth, leading to ballooning deficits, while Germany faces similar challenges despite a different fiscal approach.
The European economic model, once supported by large industrial concerns, is now undermined by technological shifts and geopolitical rifts, eroding stability and research funding. Without significant changes, a financial crisis looms large over Europe's future.
