Europe’s hopes of a return to growth in 2026 rest largely on Germany’s €1tn debt-funded spending drive on infrastructure and defence, according to a Financial Times survey.
Yet the 88 economists polled are split over whether Berlin’s fiscal push will deliver a “European renaissance” or fade amid entrenched structural weaknesses and geopolitical uncertainty.
With its largest economy stuck in recession since late 2022, Europe needed a return of “animal spirits” to power a recovery driven by domestic demand, said Nick Kounis, chief economist at ABN Amro.
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