The Fate of the Eurozone

The U.K.'s newly announced restrictions and economic relief package offer a preview of similar moves governments in continental Europe will make in the coming days.

In the context of low growth, another year of high public spending could cast doubt on the currency area’s long-term economic outlook.

To boost economic activity and avoid protests, governments are trying to soften some lockdown measures ahead of the busy shopping season.

Hungary and Poland’s move to veto an EU spending package could delay the disbursement of much-needed funds to the bloc’s struggling economies.

Unemployment levels will continue to increase in Southern Europe in the coming months, opening the door to more anti-government protests.

Rising COVID-19 rates will force other EU countries to reimpose restrictions in the coming weeks, slowing the eurozone’s economic recovery and raising the risk of unrest.

Disputes between harder-hit southern states and the rest of the Continent will thwart the EU’s ability to increase financial integration among its members and within its currency zone.

With COVID-19 cases again on the rise in Europe, the reintroduction of lockdown measures will force governments to also extend or expand deficit-deepening stimulus programs.

Recent disputes over fiscal policy and EU integration provide a preview for the country's 2021 general election, as well as German domestic and foreign politics for at least the next half-decade.