New threats to the euro zone’s medium-term growth

The euro zone is already suffering from low potential growth, high structural unemployment and heavy deindustrialisation. In this Flash we will not look at cyclical developments, but new threats that apply to the euro zone’s medium-term growth: A major contraction in the automotive industry due to the shift to electric cars; Fiscal deficits that are not paving the way for long-term growth, but which are used to meet demands for increased purchasing power expressed by the population. As a result, there will probably be a restrictive fiscal policy in the future; The effects of non-residents’ loss of confidence in the euro zone’s stability, which has led to massive capital outflows from the euro zone and therefore to a decline in the financing available to invest in the euro zone.