Tempered in turbulence – Standard Chartered

The report from Standard Chartered economist Christopher Graham expects a challenging economic scenario for Europe in 2025, with weak growth and a high risk of recession. The European Central Bank may be forced to adopt accommodative policies. However, Graham notes that there are opportunities for a more optimistic outcome, including a potential less severe impact from US tariffs and a resilient European consumer. He also highlights the possibility of creative policy solutions, such as fiscal and institutional changes, which could help drive economic growth and integration in Europe. Specifically, he suggests that completion of banking and capital markets unions, addressing competitiveness issues, and increasing common borrowing could help mitigate economic risks. Additionally, he notes that progress on the fiscal front may be possible through greater flexibility in existing fiscal rules.