“Confidence in the eurozone's economic outlook fell back as sluggish growth weighed on sentiment, with little hope of a major rebound ahead, surveys of households and business showed.
The European Commission said Thursday that its economic sentiment indicator for the currency area edged down to 95.2 this month from 95.7 in July. Economists had expected a slight uptick.
Consumer confidence fell back, as did sentiment in industry and construction.
"Managers' uncertainty about their future business situation declined notably in the services sector, and to a lesser extent also in industry and the retail trade," the commission said.
Worsening sentiment suggests a frosty reception to the trade deal reached with the U.S. at the end of last month, under which a baseline 15% tariff will be applied to EU exports. That will hit the bloc's exporters, notably powerhouse Germany, Europe's most important economy, where output shrank by 0.3% over the three months through June -- a sharper contraction than previously estimated, according to figures released at the end of last week -- amid tariff turmoil and underlying weaknesses.
In France, Prime Minister Francois Bayrou called a confidence vote for next month that he is likely to lose, which will bring down his minority government, further exacerbating the country's deep-seated fiscal problems. A recourse to the International Monetary Fund is "a risk that stands in front of us," warned Eric Lombard, the finance minister.
In Germany, despite growing signs of weakness, business confidence improved slightly this month, a survey showed, offering a glimpse of hope for an economy struggling to gain momentum.
The Ifo Institute said this week that its business-climate index increased to 89.0 in August from 88.6 in July. Economists polled by The Wall Street Journal had expected sentiment to decrease slightly. Companies were brighter about their prospects ahead, but a little more pessimistic about current conditions.
"The German economy's recovery remains weak," Ifo President Clemens Fuest said.
August's increase in the Ifo index continues a trend of steadily rising sentiment that has gone unbroken since the start of the year.
But the latest output decline pushes Germany toward recession, with little hope of a rebound this year, ING economist Carsten Brzeski said. U.S tariffs and a strong euro will continue to weigh on German exporters, a key part of the country's economic engine.
"It looks increasingly unlikely that any substantial recovery will materialize before 2026," he said.” [1]
Economy of Western Europe is heading into catastrophe (no AI, dying industry, no competitiveness, wasteful spending, suffocating regulations, no smart rulers). Population is waiting for leadership. Leaders don't know what to do. They have nothing else to try. They are pretending to be Napoleon I (each), deeply involved in Ukraine. Despite the fact that they know, Ukraine is lost.
Why? “It’s obvious, Watson.”
Russia is significantly more powerful than Ukraine militarily, possessing a much larger active military, more equipment such as tanks and aircraft, and a larger defense budget.
Russia's Advantages
Personnel: Russia maintains a far larger number of active military personnel and reserve forces compared to Ukraine.
Equipment: Russia possesses significantly more armored vehicles, tanks, and aircraft.
Air Domain: Russia has a more capable air force, including fighter aircraft, bombers, and helicopters, and a stronger overall air defense system.
Naval Strength: Russia has a much larger and more substantial naval fleet.
Economic Resources: Russia has a substantially larger defense budget, allowing for greater military spending. Russia is resistant to the Western economic sanctions.
Russia is steadily advancing into territory controlled by Zelensky.
Ukraine has no boys in high schools, since all the boys are sent by families out of the country to avoid the death by drone after forcefully taken to the front. As the conflict continues, reliance on compulsory mobilization has dramatically increased.
Draft avoidance tactics range from hiding to illegally crossing borders or using bribery.
Ukraine’ population shows complete distrust to the Zelensky and the West, no will to fight.
Surveys show that as of August 2025, more Ukrainians favored negotiating an end to the conflict than fighting until victory, whatever does the victory mean. Disappointment with the level of U.S. and some Western European support has been recorded.
1. World News: With Rebound Hopes Faint, Eurozone Outlook Darkens. Kirby, Joshua. Wall Street Journal, Eastern edition; New York, N.Y.. 29 Aug 2025: A8.
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