Euro zone: A large number of negative adjustments remain to be carried out

In the next ten years, the euro zone will be faced with a large number of negative adjustments, resulting from: The shift to electric cars, given Asia’s monopoly in electric batteries (industrial adjustment); The likely application of the European budgetary rules to the countries that have high fiscal deficits (France and Italy; this is a fiscal adjustment); The changeover to regional and no longer global value chains, which will make the production model where goods are sold in the rest of the world obsolete (adjustment of productive organisation ). These probably inevitable adjustments will definitely weaken the euro-zone economy in the next ten next years.