Economics: Europe’s political challenges mount

Europe is facing a number of short-term macro challenges

Like most parts of the world, Europe is dealing with a number of near-term macro challenges. Inflation has spiked, supply-chain bottlenecks are hampering production, and a record number of firms are facing labour shortages.


But it’s also facing an increasing number of political challenges too

Three political challenges look particularly troubling. First, the rise of Eric Zemmour in polling for next year’s French election. Second, tensions between the EU and Poland. And third, building external pressure from the bloc’s eastern neighbours.


Renewed divergence raises the prospect of unpredictable outcomes

After 18 months in which Europe’s politicians were forced to find common ground, renewed divergence raises the prospect of unpredictable outcomes. While some of Europe’s macro vulnerabilities may have been addressed, political vulnerabilities persist.


Economics: Europe’s political challenges mount