Why we should expect potential growth to decline in Europe

We should probably not expect deleveraging in European countries to be facilitated by an increase in potential growth, as several factors will instead drive down euro-zone potential growth: The rise in relative prices of commodities , which in all likelihood is permanent, will reduce the supply of goods and services; The expected rise in real interest rates will curb capital accumulation; Energy transition investments use savings without generating additional potential production (they generate well-being by reducing greenhouse gas emissions, but not GDP).