Europe on the mend

Jean-Philippe Bry's picture
Co-author: Drummond Brodeur
Drummond Brodeur

As part of Signature’s continuing effort to keep you and your clients updated with what we are seeing in the global economy, we wanted to share with you a brief video from Drummond Brodeur and J.P. Bry where they discuss key insights from J.P.’s recent European tour. Among the topics discussed are signs of growth in the Eurozone, European monetary policy, the influence of populism, Brexit, and the emergence of regional European champions to better compete with rivals in North America and Asia.


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Submitted by Duncan Presant on

Just read that the majority of countries have already burned through their annual taxation revenues and are back to the borrowing table to finance activities. With these historic low rates, and the lack of fiscal control...apparently....where do you see this ending and how will they accomodate this year to year as the hole gets deeper?

Jean-Philippe Bry's picture
Submitted by Jean-Philippe Bry on

With respect to Europe and countries in the Eurozone, the fiscal situation is not only healthy but continues to improve. The average budget deficit in the Eurozone this year is 1.3%. Some countries like Germany are in surplus and it is growing. Some like France will be around 2.9% but also expected to improve in 2018. One should not underestimate the extent of fiscal austerity that took place over the last 8 years in the Eurozone. The pent up demand created out of those years of cutbacks is the reason the recovery is healthy. As the economy grows, it raises tax revenues. Compare this to the US that has a budget deficit today of 4%, which is likely to rise with tax cuts and hurricane relief.  

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