Despite intensified global competition, the eurozone is expected to grow moderately. Although a tariff deal has been reached with the US, the burden on foreign trade remains high. Germany is providing the strongest fiscal stimulus in the Euro area with extensive infrastructure and defence spending. Nevertheless, there are no signs of a significant increase in European investment activity in line with Draghi's agenda. Overall, growth potential in the Euro area remains too low to ensure long-term competitiveness. Europe therefore urgently needs to improve its structural conditions.