Europe
Europe is politically diffuse and poorly armed for a great power at a geopolitical crossroads. Yet it has proved deceptively capable of leveraging the NATO alliance and its enormous economic “soft power” to expand eastward. Now its mettle is being tested as Russia – and, to a lesser extent, Turkey – push back.
European Union
Those European leaders who like to complain about the ongoing trade surpluses of the German economy should not celebrate the recent slowdown in Germany’s exports and GDP growth. Higher labor costs and tensions in international trade may cause trouble for German exporters, but they are already investing in new production facilities in low-cost countries. If German exports slow down, their market share might be taken by German producers outside of Germany, while the productivity gap between Germany and the rest of Europe will widen.
Europe
Nearly three decades after the breakup of Yugoslavia, the borders in the Balkans are still up for debate. Eight unresolved border disputes are dividing countries in the region, pitting European Union and NATO members against each other and threatening the integration of several EU candidates. Some of these disputes will likely last for years to come, as the enmity of past conflicts gets in the way of negotiations.
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