As Germany and France struggle, Keynesian stimulus alone cannot pull them out of their malaise

As Europe prepares for a potential trade war after the US president-elect, Donald Trump, takes office in January, its two largest economies are struggling. While Germany is heading into its second consecutive year of zero growth , France is expected to grow by less than 1% in 2025.

Is Europe’s economic stagnation the result of insufficient Keynesian stimulus, or are its bloated and sclerotic welfare states to blame? Either way, it is clear that those who believe simple measures such as higher budget deficits or lower interest rates can solve Europe’s problems are detached from reality.

As Germany and France struggle, Keynesian stimulus alone cannot pull them out of their malaise

As Europe prepares for a potential trade war after the US president-elect, Donald Trump, takes office in January, its two largest economies are struggling. While Germany is heading into its second consecutive year of zero growth , France is expected to grow by less than 1% in 2025.

Is Europe’s economic stagnation the result of insufficient Keynesian stimulus, or are its bloated and sclerotic welfare states to blame? Either way, it is clear that those who believe simple measures such as higher budget deficits or lower interest rates can solve Europe’s problems are detached from reality.

As Germany and France struggle, Keynesian stimulus alone cannot pull them out of their malaise

As Europe prepares for a potential trade war after the US president-elect, Donald Trump, takes office in January, its two largest economies are struggling. While Germany is heading into its second consecutive year of zero growth , France is expected to grow by less than 1% in 2025.

Is Europe’s economic stagnation the result of insufficient Keynesian stimulus, or are its bloated and sclerotic welfare states to blame? Either way, it is clear that those who believe simple measures such as higher budget deficits or lower interest rates can solve Europe’s problems are detached from reality.