Europe 'walking naked' into Trump's trade war

New ECB chief Christine Lagarde’s real challenge will be to convince Germany that it is time to take off the spending caps. That alone will require a seismic shift

14th August, 2019
Work already piling up for Christine Lagarde. Picture: Getty

The euro zone is uniquely vulnerable to any blockages in international trade. In 2017, exports of goods and services amounted to 27.9 per cent of its gross domestic product compared with 12.1 per cent for the US, according to the ECB. The monetary union had a current account surplus of €323 billion, or 2.8 per cent of GDP, in the year to May.

While countries such as Germany and Italy might be very different in their commitment to fiscal...

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