The writer is a financial journalist and writes the Wealth of Nations newsletter
As 2024 draws to an end, it is hard to be optimistic about Europe. Its politics become ever more fragmented and polarised. Germany may be without a stable government until at least after elections in late February, France may have to wait until 2027 when President Emmanuel Macron’s term ends.
Growth has stalled, unemployment is expected to rise. The economy has been held back by burdensome regulation, high energy prices, weak demographics, growing competition in manufacturing sectors and a failure to keep pace with Chinese and American technological advances. Much of the continent is grappling with excessive debt even as governments are under pressure to deliver big increases in defence spending.