THE trade war US not only does not boost the US economy and the dollarbut on the contrary it seems to benefit the European market, and in particular the Germany. According to an analysis by Deutsche Welle, as the deadline of 9 July 2025 is approaching the resolution of the US and the EU, the concern of further escalation with new Washington sanctions is increasing. At the same time, international investors are massively turning to Europe.
The shift of investment interest to Germany
While the US S&P retreats, the German DAX records repeated records. Since the election of Donald Trump, the dollar In relation to the euro it is falling, enhancing European attractiveness for investors.
Concern is caused by the explosive increase of US public debtwhich has exceeded $ 36 trillion – ie over 120% of US GDP – with the IMF and the German Bundesbank warning of the risk of upheaval in global money markets if the trade is not divergent. *
IMF Deputy Director Gita Gopinath told the Financial Times that *”the ever -expanding public debt in the US is a serious risk factor” *. Former head of the famous IFO Institute, Hans Werner Zin, stressed that the *”American model” *exhausts its limits: “” Americans must tighten their belt ” *.
Duties do not provide a solution to deficits
Analysts estimate that the enforcement dictatorial It cannot eliminate years of US deficits and facilitates the conversion of investment interest. Gossip companies, such as Apollo Global and Blackstone, are now expanding their activities in Germany, with the stability of the European market being an attraction.
As KFW’s German Bank leader, Stephen Windels, points out in his statements to Handelsblatt: *”International investors’ interest is increasingly focused on Germany and the European market” *.
The charm of the single European market
Indicatively, Blackstone has announced new investment plans of up to $ 500 billion in Europe for the next decade. In a period of geopolitical uncertainty, Europe is emerging as a safe investment refuge, mainly due to the extensive infrastructure and investment programs agreed upon, such as Germany’s new development package.
The role of the role is the role of European Union and Brussels in the strengthening of the single market, now numbering nearly 450 million consumers. According to a Commission’s internal document, an increase of just 2.4% in intra -Community trade is sufficient to offset losses of 20% of exporting to the US.
The decisive will also be the decrease in bureaucracywhich will mainly benefit small and medium -sized enterprises, as well as the shift to new markets in Asia – India and Indonesia – and Latin America. Only in this way *”Tired Old Epirus” *will be able to become, at least commercially, *”Great Again” *.
Curated by: Dimitra Kyranoudi
Source :Skai
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