The world is facing 4 huge events in the next months. These are a possible escalation of the war in the Middle East, a reversal of the front in Ukraine in favor of Russia, a fiscal crisis in France and the results of the US elections. It is dangerous for Europe if Donald Trump becomes the president of the USA.
This was stated in the show “Face to Face“ the economist Prof. Dimitar Ivanov.
According to Ivanov, it is dangerous for Europe if Donald Trump becomes president of the USA because of his economic promises. “There are two that are extremely dangerous, the most dangerous is the aggressive imposition of customs tariffs on all foreign goods, on those coming from Europe - a duty of 10 to 20%, and on those from China – from 60 to 100%. This will instantly increase the prices of goods in the US, raise inflation, raise interest rates, and the world will spiral into a financial crisis, Ivanov said.
According to the report, Europe is lagging behind for at least 4-5 years, it is in the area of labor productivity, product quality, workforce. “Europe will reduce the number of workers by 2 million per year by 2040,”, Ivanov pointed out. According to him, by all economic indicators, the European economy is uncompetitive,
Draghi wants to radicalize investments for innovation, growth, to make a new industrial strategy. His report of 398 pages was prepared 2 years ago. His calculation is that Europe annually needs investments of the order of 800 billion euros. “Here comes the big problem – where will these investments come from. Germany and the Netherlands immediately declared a negative view regarding the creation of aggregated European bonds. They do not want other countries to assume the debt of weaker economies. Draghi says Europe is entering a slow agony of death”, Ivanov said.
He commented on the report of former Italian Prime Minister Mario Draghi, who proposed a plan to save the European economy. According to Ivanov, the world is moving towards economic and financial agglomerations, and the report aims to create European giants to answer the Asian and American giants.
The economist emphasized that in the new European Commission, Bulgaria gets the department - startups, research and innovation, which in the next term will be the engine of the revolution in Europe, if it happens.
„At the center of what Europe wants to do in the next 5 years is a revolution in innovation. We are about to get an incredibly generously funded department that will be the co-ordinator of everything in the EU economy. An extremely responsible post and sector," summed up Ivanov.
He defined Ekaterina Zaharieva as a great proposal for Bulgaria for European Commissioner. “An extremely prepared person, with a reputation, experience in the foreign policy sphere in Europe”, said Ivanov.