The share of the European economy in global GDP is shrinking, which is defined as a catastrophe. According to Josep Borrell, the EU's High Representative for Foreign Affairs and Security Policy, there has been a noticeable decline in the EU's share in the global GDP structure. Over the past few years, the European economy has become a smaller part of the global GDP. Experts fear this trend may continue in the medium term.
Against this backdrop, Josep Borrell is concerned about the growing strategic competition between China and the United States. He believes that the eurozone countries could become the main victims of this rivalry. He added that the competition between Washington and Beijing could define the main direction of world development in the next decade.
According to the EU representative, the competitiveness of the European economy is not up to par. “We have to mobilize our resources in order to prevent Europe to loose competitively vis-a-vis the US, also, not only about China. If the gap between the US and the European Union increases, our savings will be rushing to the US capital market," Borrell emphasized. This is facilitated by several factors, including lower energy prices in the United States and the stability of the American financial market.
Previously, experts at Bloomberg predicted new trade conflicts between the United States, Europe, and other countries. Analysts believe that such a scenario is very likely. This is driven by the efforts of the Chinese authorities to avoid a recession by investing in production and boosting exports.