Christos Floros

Category: European Union

  • Addressing Economic Vulnerabilities in the EU and Shifting to Sustainable Growth

    Addressing Economic Vulnerabilities in the EU and Shifting to Sustainable Growth

    In his recent analysis, Nicolas Goetzmann, Head of Research and Macroeconomic Strategy at Financière de la Cité, offers a compelling and comprehensive examination of our current economic landscape, highlighting the critical issues plaguing the United States, China, and the European Union.

    He astutely points out the United States’ relative stability is grounded in a robust domestic demand that continues to fuel the country’s development. In contrast, China is grappling with an outdated growth model, characterized by unsustainable levels of investment and a heavy trade surplus. And in the tussle for economic supremacy between the U.S. and China, the European Union, particularly the Eurozone, finds itself in a precarious position, weakened by a lackluster domestic demand and a heavy reliance on an external trade structure that’s been geopolitically undermined in recent years.

    Goetzmann suggests that European strategic ambition, focused on “strategic autonomy,” is at odds with our current development model rooted in external demand and characterized by internal weakness. To address this, Goetzmann advocates for a macroeconomic model dedicated to restoring and structurally supporting internal demand within Europe.

    Such a shift, Goetzmann argues, would benefit European businesses by creating a robust domestic market akin to the United States. It would simultaneously reduce Europe’s vulnerability to external demand and elevate the income of its population. This strategy would foster structural growth, lead to increased investment, and drive future growth potential. Additionally, it would offer more significant fiscal leeway to Eurozone governments.

    To the least, this is a call to action. Worth reading, more than happy to hear your thoughts.

  • A New Era for Politics: Starting from the Grassroots

    A New Era for Politics: Starting from the Grassroots

    Society should never be taken for granted. Across Europe, citizens are growing increasingly discontented, rejecting passivity, and demanding more from their leaders.

    The time has come for a transformation in European politics, one that begins at the grassroots level. The traditional “funnel” approach of party politics, which often rewards long-time members while neglecting society, needs a profound overhaul. This need for change is not unique to any one country; even in Luxembourg, similar concerns resonate.

    Arrogance in politics has become a significant concern for the public. Politicians who fail to listen to their constituents and prioritize their own egos over the needs of the people are being met with growing resistance. The electorate is no longer willing to tolerate the politics-as-usual approach that often reeked of complacency and entitlement.

    A notable shift is underway in the realm of European politics. The old routine has been disrupted over the past decade, signaling a need for new inspiration. Citizens are growing more engaged and interested in politics, seeking genuine change and accountability from their leaders. This surge in political interest is a reflection of society’s evolving values and expectations.

    To bridge the growing gap between traditional party politics and the changing society they aim to serve, a fundamental shift is necessary. Parties must adapt to these new realities and create an inclusive political environment. The parties themselves must become platforms for fresh voices and ideas.

    European politics, starting at the grassroots level, must embrace change. Parties need to facilitate increased citizen participation and actively seek out diverse perspectives. Society should never be taken for granted, and the political landscape must evolve to reflect the aspirations and demands of the people.

    In Luxembourg, as in other European nations, the call for change is echoing louder with each election. The time has come for a politics that is more responsive, inclusive, and humble. To restore trust and relevance in the eyes of the public, parties must adapt and recognize that the real power lies with the people.

    A new era of European politics is on the horizon, and it begins with a change in mindset at the grassroots level.

  • And the Case for EU Defense?

    And the Case for EU Defense?

    As we look back at the tumultuous events of the past two decades, it’s impossible to ignore the seismic shifts in global geopolitics. Georgia, Syria, Ukraine, Israel: all these recent and current conflicts serve as stark reminders that our world order is fraying at the seams.

    The violations of longstanding norms of international law by a permanent member of the UN Security Council have released a Pandora’s box of warlike tendencies. War is no longer mostly confined to history books; it is reemerging as the ultimate arbiter, underlining the law of force as the new rule.

    This growing instability isn’t merely a distant menace but is inexorably creeping towards Europe. The pressing question now is whether the EU can muster the strength needed to make its diplomatic efforts truly effective, and work towards European Defense.

    The European Union must now grapple with the reality of power. This means crafting mechanisms within its member states to ensure the integrity of our political model, safeguard our interests, and support our allies.

    To gain the respect of increasingly emboldened global actors, Europe cannot shy away from the military dimension. The need for a strong defense is evident. We’ve got to aspire to be more self-reliant.

    At the moment, we seek reassurance in grand alliances and issue calls for restraint to international actors who are boldly disregarding them. The challenge before us is clear: will Europe seize the moment to secure its future in a rapidly evolving world?