Part 7/8:
The EU's dependency on external markets, particularly the United States and China, underscores the need for boosting domestic consumption. When local consumers spend less, manufacturers will have to look beyond the EU for sales, increasing vulnerability to international trade disruptions, such as tariffs imposed by the U.S. or economic slowdowns in China.
To stimulate domestic demand, European governments might need to provide direct financial support to households. However, this is complicated by the fiscal constraints many national governments face, limiting their ability to enact large stimulus packages.