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Europe urged to unite amid US tariffs, rising debt, and big tech challenges

Xinhua | Updated: 2025-03-26 09:04
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ROME - European unity is vital to tackling economic challenges ranging from new US tariffs and rising public debt to the expanding influence of big tech firms, Italian political figures and analysts have said at a conference in Rome.

The conference, titled "Governing Europe and Italy in the Age of Donald Trump", was hosted by LUISS University on Monday evening and featured prominent speakers, including former Italian Prime Ministers Mario Monti and Giuliano Amato, Finance Minister Giancarlo Giorgetti, European Commission Vice-President Raffaele Fitto, and LUISS professors.

"What we are seeing today is not the only time Europe has faced big challenges," said Monti, who served as Italy's prime minister between 2011 and 2013 during the global sovereign debt crisis. "But we must act together to confront the current challenges."

Earlier this month, US President Donald Trump announced a 25-percent tariff on aluminum, steel, and related imports, with another round set to take effect on April 2, though details remain unclear. In response, the European Union initially planned retaliatory tariffs for April 1 but postponed them by at least two weeks following a European Council meeting to allow more time for negotiations.

On the sidelines of the conference, economics professor Pietro Reichlin told Xinhua that the Trump administration's unpredictable tariff policies complicate the EU's response strategies.

Reichlin stressed the importance of understanding US trade goals to reach an agreement, pointing to the EU's surplus in goods and the US strengths in services and energy as potential negotiation points.

Italy's Finance Minister Giorgetti warned that mounting debt and the growing influence of big tech firms - particularly US giants such as Google and leading players in artificial intelligence, are increasingly limiting the policymakers' options.

According to Eurostat, the EU's average debt stood at 81.6 percent of GDP at the end of the third quarter of 2024 while the eurozone recorded an average ratio of 88.1 percent. Italy's debt-to-GDP ratio reached 136.3 percent, second only to Greece.

Speakers stressed the need for greater cohesion within Europe to address external trade pressures, the Ukraine conflict, and internal disputes within the bloc. Amato emphasized that cooperation, not conflict, drives prosperity.

Reichlin also stressed the importance of adapting to evolving trade dynamics with China. "Adjusting trade relations is crucial, as both sides stand to benefit from deeper engagement," he said.

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