Escalating Trade Tensions Could Harm Global and European Economies

Luis de Guindos, the Vice President of the European Central Bank (ECB), expressed concerns on Friday about the potential negative impacts of increasing trade tensions, especially the new US tariffs, on both the global and European economies.

Protectionist Policies May Affect Banking and Fiscal Strategies

De Guindos emphasized the detrimental effects a trade war could have on economic growth, highlighting how the protectionist policies of the new US administration might influence banking and fiscal policies.

Unprecedented Uncertainty in the Eurozone

He also pointed out the unprecedented level of uncertainty currently facing the eurozone, the highest since the pandemic. This uncertainty, along with weakened consumer confidence and sluggish growth, poses significant challenges to recovery efforts.