Editorial: La Vanguardia

• The ECB fears that Trump's trade war with the EU could stagnate the European economy.
• Increased public deficits to finance higher military expenditure may cause more inflation.
• Europe lacks alternatives to reverse the impact of the U.S. shift in foreign policy and face Russia's military expansion.
• The EU seeks to boost its defense investments to offset the protective role that the U.S. played through NATO.
• A massive issuance of joint debt is being considered to finance the increase in military spending.
• In case of a trade war escalation, European growth could decrease and inflation could increase.

Conclusion: The EU faces great uncertainty and needs to respond with calmness, unity, solidarity, and strategic intelligence to minimize the negative impacts on its economy and citizens.

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