12/09/2024

Europe’s Economy Needs Help

Political chaos in France and Germany means it may be slower in coming

Even before the French and German governments collapsed, Europe’s economy had enough difficulties. Tepid growth and lagging competitiveness versus the U.S. and China. An auto industry that is struggling. Where to find billions for defense against Russia? And now Donald Trump threatening tariffs.

Solutions will be harder to find while the two countries that make up almost half of the eurozone economy remain stuck in political paralysis well into 2025.

Where once there was the so-called French-German axis to push Europe ahead, now there’s a vacuum. French Prime Minister Michel Barnier resigned Thursday after losing a vote of confidence, and while President Emmanuel Macron will appoint a successor,the new head of government will lack a majority. Elections are not constitutionally permitted until at least June.

Please select this link to read the complete article from The Associated Press.