Europe’s economic outlook with Carsten Brzeski

Europe’s economy is at a crossroads. While inflation has eased toward target and surveys reveal a rebound in business sentiment, Germany—historically the engine of European growth—remains on the brink of recession despite ambitious government plans for infrastructure and defense spending. Meanwhile, the recently forged U.S.–EU trade deal, shaped by new tariffs and shifting alliances, brings added uncertainty to the outlook. Is the continent heading toward more insular trading blocs and diminished global commerce, or are these developments merely part of another economic cycle?

Beneath the surface, deeper structural challenges persist. Fiscal deficits are stubbornly high even as policymakers debate consolidation. Productivity continues to lag behind the United States, capital markets are fragmented, and demographic headwinds threaten Europe’s long-term growth prospects.

Carsten Brzeski, ING’s Global Head of Macro, joins Serge Mampaey, senior financial journalist at De Tijd, to explore whether Europe faces a decade of stagnation or stands on the verge of transformation. Together, they will offer candid insights into the forces shaping the region’s economy and discuss the signals that could reveal its future direction.