A volatile geopolitical environment, the loss of the US as a reliable partner, democratic backsliding in some member states, and declining economic competitiveness are just some of the challenges the EU will have to confront in 2025. How it addresses them will determine its future as a global actor.
considers the complex array of internal and external challenges the European Union must confront in 2025.
No country wants external developments to drive up its borrowing costs and weaken its currency, which is what the UK is facing today, together with serious cyclical and structural challenges. But if the British government responds appropriately, recent market volatility might turn out to have a silver lining.
urges the government to communicate better what it is doing to boost resilient growth – and to do more.
Ricardo Hausmann
urges the US to issue more H1-B visas, argues that Europe must become a military superpower in its own right, applies the “growth diagnostics” framework to Venezuela, and more.