Journal of
Italian
Banking
Association

year 100
 

Archive » September 2025 » Europe’s new challenges in an unbalanced world

Europe’s new challenges in an unbalanced world

Ignazio Visco
September 2025 - n. 9
Keywords: European economy, international economic order, global imbalances
Jel codes: F02, E02, F15

Europe faces growing demographic, technological and market challenges amid rising global uncertainty and markedly shifting domestic and international policies of Trump's second US administration. While external pressures could spur deeper integration, political and institutional barriers persist. To maintain economic dynamism and geopolitical influence, Europe must strengthen the single market, reducing fragmentation and harmonising legislation, boost innovation, without abandoning regulation aimed at consumer protection, and pursue institutional reforms, also aiming at creating a sizable and truly European safe asset market. For the European Union to emerge as a stabilising force in an unbalanced world, the willingness of its member countries to pragmatically address current tensions between the pursuit of domestic objectives and the need of collective action is a must.

Interested in this paper?
Buy the issue