The EUR/USD exchange rate has generally moved downward since its high point in 2008, reflecting a period of euro weakness and U.S. dollar strength. After reaching its peak, the pair has gone through several bearish phases, and interestingly, the support and resistance lines form a staff.
Economic Recovery in the EU and UK Since the Global Financial Crisis
The EU and UK have seen "no meaningful recovery" since the global financial crisis. Many regions in the EU managed to recover their GDP per capita to pre-crisis levels within a couple of years, though the pace and strength of recovery varied widely. The UK, after a deep recession, returned to its pre-recession GDP levels within several years. However, both the EU and UK have faced ongoing challenges, including sluggish productivity growth and weaker expansion compared to previous decades.
Green Energy Transition and Grid Stability
European policymakers have made the green energy transition a top priority, sometimes advancing more quickly than infrastructure could support. Experts warned as early as 2014 that the rapid adoption of solar panels could put stress on power grids and increase the risk of instability. This concern became reality in Spain, where a significant blackout occurred shortly after the country announced it had achieved 100% renewable power on weekdays. To prevent similar incidents, experts now believe that a massive upgrade of the EU power grid will be necessary to ensure reliable integration of renewable energy sources, and this will cost a trillion dollars. The shortage and rising energy costs will make the EU and the UK lag in the AI race. Especially, a data center is power-consuming. The energy cost of the UK is the highest among developed countries and 5 times that of the US. Thank you to the politicians adopting an unrealistic path to green energy.
Outlook for the EU economy
With ongoing challenges such as the need for large-scale infrastructure investment, slow productivity growth, and pressures from global trade dynamics, the EU economy is expected to continue facing headwinds. Most forecasts indicate that economic growth will remain subdued in the short term, and further slowdowns are possible if structural issues are not addressed.
Economic Recovery in the EU and UK Since the Global Financial Crisis
The EU and UK have seen "no meaningful recovery" since the global financial crisis. Many regions in the EU managed to recover their GDP per capita to pre-crisis levels within a couple of years, though the pace and strength of recovery varied widely. The UK, after a deep recession, returned to its pre-recession GDP levels within several years. However, both the EU and UK have faced ongoing challenges, including sluggish productivity growth and weaker expansion compared to previous decades.
Green Energy Transition and Grid Stability
European policymakers have made the green energy transition a top priority, sometimes advancing more quickly than infrastructure could support. Experts warned as early as 2014 that the rapid adoption of solar panels could put stress on power grids and increase the risk of instability. This concern became reality in Spain, where a significant blackout occurred shortly after the country announced it had achieved 100% renewable power on weekdays. To prevent similar incidents, experts now believe that a massive upgrade of the EU power grid will be necessary to ensure reliable integration of renewable energy sources, and this will cost a trillion dollars. The shortage and rising energy costs will make the EU and the UK lag in the AI race. Especially, a data center is power-consuming. The energy cost of the UK is the highest among developed countries and 5 times that of the US. Thank you to the politicians adopting an unrealistic path to green energy.
Outlook for the EU economy
With ongoing challenges such as the need for large-scale infrastructure investment, slow productivity growth, and pressures from global trade dynamics, the EU economy is expected to continue facing headwinds. Most forecasts indicate that economic growth will remain subdued in the short term, and further slowdowns are possible if structural issues are not addressed.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.