The Future of Europe

The German and European economic model of the social market economy is facing new challenges. So far, the European Union has only been geared for growth. Now, for the first time, a Member State wants to leave the Community. It is important to explore the consequences the UK’s exit will have. Various forces are promoting fragmentation, which could transform the Union into a collection of multinational, multilingual, and ethnically diverse entities. Internally, populist-led governments are trying to undermine the unity and vision of Europe and to question, or even override, the rules that have been in place to date. From the outside, powerful economic and geopolitical challenges are shaking the foundations of the Community, influencing individual countries and specific economic sectors. Developments in debt levels, productivity, and the labour market are a cause for concern in several countries. US companies are increasingly dominant in the digital economy, there is intense tax and location competition, and protectionism, which also emanates from the USA, is on the increase.