site.btaInstability and Uncertainty Are Key Words for European Economy - Estonian Professor

Instability and uncertainty are the key words that describe the European economy, says Professor Raul Eamets, a lecturer at the University of Tartu in Estonia. He was a member of the Supervisory Board of the Estonian Central Bank from 2004 to 2009 and chairman of the Estonian Fiscal Council from 2014 to 2023. Eamets participated in the Banking Today conference organized by Investor.bg on Tuesday at Sofia's Inter Expo Center.

Raul Eamets linked instability to the global political situation. “We do not know how the war in Ukraine, Gaza will end, there are problems in Syria, China, Thailand, there are many political risks,” he said.

In his words, when Germany is facing problems, Europe is also facing problems. Germany accounts for 24% of the European economy and a third of exports, he stressed.

According to him, it is still impossible to predict how the tariffs announced by US President Donald Trump will affect the European economy. 

Raul Eamets believes that pouring capital into the defence industry will help the development of the common European economy.

Macroeconomic risks to Europe's economy are linked to geopolitical risks and general uncertainty. Second are the risks related to cyber security, artificial intelligence, fake news, manipulation during elections, he said, adding that Europe's economy faces both climate and social risks.