A Financial Times poll of 72 economists identified a possible global trade war and regional political paralysis as the two biggest threats facing the Eurozone economy in 2025. US president-elect Donald Trump’s pledge to impose tariffs on imports, particularly from China, has raised concerns about retaliatory actions and its impact on Eurozone growth. Economists predict subpar growth for the Eurozone in the coming year, with uncertainty surrounding Trump’s trade policies leading to a delay in investments. While some economists believe the EU should engage in trade negotiations with the US to avoid a trade war, others warn that seeking a deal with Trump may only encourage more aggressive actions. The inability of Europe to address its internal issues is also seen as a key risk, with some economists comparing it to the decline of the late Habsburg empire. Despite some potential reasons for optimism, such as declining interest rates and possible changes in Germany’s debt brake policy, concerns remain about the economic and political challenges facing the Eurozone in the coming year. the text you provide.
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