EU Faces Economic Uncertainty: US Surtax and Cannes Power Outage Highlight Risks

Cannes Power Outage Underscores EU's Vulnerability Amidst Looming US Surtax: A recent power outage in Cannes, France, serves as a stark reminder of the potential economic instability facing the European Union. The disruption, affecting 160,000 homes, coincided with a news segment on BFM TV analyzing the potential impact of a 50% US surtax on the EU. Economist Pascal De Lima warned of significant consequences across various sectors. "If you were selling a car for $30,000, with a 50% surtax, it becomes $45,000," De Lima stated, highlighting the drastic price increase. This would inevitably slow down exports and force European businesses to seek alternative markets, a process that takes considerable time. The power outage, while seemingly unrelated, underscores the fragility of the EU's economy and its reliance on stable energy supplies. The potential surtax adds another layer of complexity, forcing a reassessment of trade strategies and raising concerns about a possible recession.