Addressing Global Macroeconomic Imbalances (legrandcontinent.eu)

• Global imbalances are symptoms of unsustainable growth models.
• Tariffs and exchange rate adjustments fail without broader fiscal coordination.
• Europe must prioritize a capital union and common funding for strategic strategic autonomy.

"Global current account imbalances are symptoms of structural growth failures rather than simple trade issues or exchange rate problems. The US, China, and Europe each contribute differently: the US through persistent fiscal deficits, China through manufacturing subsidies and weak internal consumption, and Europe through a structural lack of productive investment capital. Tariffs and currency manipulation are ineffective tools for correction. Sustainable adjustment requires coordinated macroeconomic reforms, European capital market integration, and the issuance of common debt to finance strategic public goods like high-tech defense, AI, and sovereign infrastructure to prevent further capital leakage to US markets."