High foreign risk on Europe’s economy

The euphoria appears unending on the financial markets boosted by a rise in consumption in the USA and greater than expected European Quantitative Easing (QE). There are green lights everywhere on the road of Europe’s economy thanks to the fall in oil prices, the weakening of the euro against the US dollar and the ECB’s very accommodative policy. Yet crisis from abroad could suddenly whistle the end of the party. Russia has just been deprived of her “investment” grade and her economy is facing gloomy perspectives. The war in Ukraine is causing a dozen deaths a day and according to analysts, the harsher the sanctions the tougher President Vladimir Putin’s policy. China’s growth has slowed significantly and South American countries, particularly Brazil and Argentina, seem nowhere politically and economically. If abroad carries many tensions, it is likely that interdependencies will export them at home.