The Business Circle urges Europe to strengthen its competitiveness in the face of the global tariff threat.

 

 

El Businessmen's Circle has issued a strong warning about the growing turbulence in the international economy, urging Europe to take decisive measures to strengthen their competitiveness.

 

The business organization specifically pointed to the tariffs imposed by the US president Donald Trump since last April 2, warning that these could harm the more than 180,000 European companies, including more than 27,000 Spanish ones, that currently export to the American market.

 

 

Given the outlook of increasing global economic instability, the Business Circle expressed its concern about a Europe that could become "uncompetitive, over-regulated and fragmented".

 

In response, he reiterated his call for a solid European strategy, based on competitiveness, the implementation of structural reforms and firm progress towards a genuine political union.

 

The report highlights that the new The international scene is characterized by a protectionist and transactional shift in the United States trade policy, which threatens to distort trade worldwide and slow economic growth. The potential rise in tariffs to levels above 20% is mentioned, according to estimates by the Budget Lab at Yale, and its consequent negative impact on financial markets and investment, representing a significant challenge for European companies with strong ties ocean liners.

 

The International Monetary Fund (IMF) estimates that the tariff war could shave half a percentage point off the Global Gross Domestic Product (GDP)For Europe, this impact, combined with other stagnant factors, could translate into a prolonged cycle of low economic growth.

 

The Business Circle emphasized that tariff negotiations must go hand in hand with the implementation of pending structural reforms, considering it crucial to move towards an effective political union. The organization proposes that the European response go beyond tactical tariff retaliation, which would only aggravate the situation, and advocates taking advantage of this situation to promote reforms that strengthen business competitiveness and reduce internal barriers within the European Union.

 

In addition, the think tank suggests supporting market diversification and the adaptation of supply chains through active and temporary policies, as well as strengthen strategic autonomy in key areas such as energy, raw materials, artificial intelligence and defense. Finally, it insists on the need to accelerate the European political integration, including through specific coalitions, on issues such as debt mutualization and the consolidation of a more homogeneous economic space.

 

The Business Circle highlighted the urgency of implementing the recommendations of the Letta and Draghi reports, and warned about the growing productivity gap between the European Union and the United States, which requires an immediate and coordinated response.

 

In a forceful message, the Circle asserted that "pragmatism must prevail" and that "history demonstrates that protectionism impoverishes." It added that "Europe needs profound reforms, not stopgap measures." and that it is at a "decisive moment to define whether we want to be relevant actors or subordinate spectators in the new world order."

 

Finally, the Business Circle urged entrepreneurs to adopt prudent but ambitious management, strengthening their financial position, exploring inorganic growth opportunities, and expanding into new markets emerging from this new geoeconomic scenario.