After years of dormant peripheral risk, the recent resurgence of fragmentation issues in Europe, amid rising stagflationary risks at a time of Central Banks committing to tame inflation, puts the delicate fiscal and monetary equilibrium under the spotlight.

As holidaymakers resume their familiar summer breaks and crowds return to the Champs-Elysées to cheer on the final stage of the 2022 Tour de France, elsewhere established customs and trends seem less secure.

The concept of strategic sovereignty goes far beyond the issues of security and defence. It also assumes relative self-sufficiency, and the ability to impose one’ standards and to create global leaders in tomorrow’s ecosystems.

Our Global Views team attempts to answer some of the questions often asked by our clients.

The resurgence of Covid-19 cases in some countries is an area for attention, but should not lead to new generalised lockdowns due to vaccinations which are progressing at a strong pace.

The pandemic has highlighted Europe’s dependency on several critical goods, including pharmaceutical products and medical equipment.

Recently, financial markets have had to digest some mixed signals from the US economy (August jobs report and retail sales, latest CPI).

As the European economy is recovering from the largest economic shock of modern history, we are revising our growth and inflation assumptions to the upside.

As a complement to the Special Europe report, we try to answer some of the key questions often asked.