Thursday, February 20, 2025

How Europe must respond

 Economist:

Let us spell out the reality Europe faces. It is an indebted, ageing continent that is barely growing and cannot defend itself or project hard power. ...
Paying for this rearmament will take a fiscal revolution. ...In order to bear that, Europe will have to cut welfare: Angela Merkel, Germany’s former chancellor, used to say that Europe accounted for 7% of the world’s population, 25% of its GDP but 50% of its social spending. To raise growth, Europe must press ahead with obvious but endlessly delayed reforms, from unifying capital markets to deregulation.

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