A United Europe Can Shape the Global Economy

June 3, 2025--The European Union must unite to shape today's global economy, rather than be shaped by it
Not many places match the European Union for quality of life. Its workers enjoy more time off than in many other regions, yet their living standards are among the highest. Its core values of solidarity are exemplified in social contracts that ensure the state will care for those who need it.

Yet lately the EU has lost confidence in its economic model. Wealthier than China and more populous than the United States, it has been trailing both in growth and has fallen back in technological innovation since the global financial crisis. The growth gap is widening as the continent’s workforce shrinks, productivity stagnates, and trade tensions rise. And now governments are scrambling to boost defense spending to rely less on the United States for their security.

Can the EU rouse itself to meet the challenges of a new era marked by rapid geopolitical shifts and policy uncertainty? The newest issue of Finance & Development examines that question in depth.