Recently, an economist for the Edmond de Rothschild asset management firm has come up with the concern that imposes Europe for being in threat with the ongoing trade war between the United States and China. This came out on Tuesday during the event at MEDEF summer university in Paris when Mathilde Lemoine told the media that in this ongoing war between China and the United States, there is a good chance that Europe will become the “big loser”.
During her talk, she mentioned how the intention of President Donald Trump to develop services exportation to China will inflict bad impact on Europe as it is far too fragmented to take advantage.
She explained her concern by mentioning how the Euro Zone and France are so far not well-equipped to export their service sector especially finance. She added that as there is no single market for the services in Europe hence, it is a major challenge for the Europeans to negotiate with China and the US on the defined terms.
What about Italy?
This was not the only state that she mentioned to press. In fact, she also switched the focus towards Italy. She said this trade war of the US and China might bring crisis for debt-laden Italy as well. She backed her statement by the fact and figures stating that Italy has recorded the government debt equivalent to more than 130 percent of the total GDP in 2017. Thankfully the lowering of the European Central Bank’s have helped them keep repayment down, she added.
She also mentioned that the lack of the structure in the countries like France and Italy might make the Euro Zone weak across the market.
Mathilde Lemoine, the famous economist has put forth some great points stating the drowning of Europe with the ongoing trade war between China and the United States. She did not only shared her concern and perspective, in fact, backed her saying with facts and figures.