You can count on European governments to be MIA again in 2020.
You can count on European governments to be missing in action again in 2020, as they were this year, when urged to help steer the continent’s economy out of its current slump. They remain divided, reluctant to reform either their own economies or the eurozone’s institutions, and the major powers are turning inward, focused more than ever on their own domestic problems.
Lagarde is not expected to spring any surprises on markets when she answers questions at her first press conference as ECB president on Thursday. She will dutifully toe the party line — continuity with Draghi’s loose monetary policies in light of the persistent global slowdown. And she will confirm the upcoming “strategic review” of the central bank’s policy, which will take months and run well into the end of 2020.
In other countries, the call for more reforms is running against national political agendas. In France, President Emmanuel Macron is contending with major strikes against his planned reform of the pension system, and nationwide elections for local governments will test the his popularity next year. In Italy, the coalition government looks too fragile to get serious about reforms.
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