ECB Vice President: eurozone stability is threatened by Trump's policies

Under the leadership of Donald Trump, the United States is witnessing policies that are causing considerable unease among investors. The growth trajectory of the global economy is still at the forefront of market discussions. Uncertainty about real GDP has increased significantly from the COVID-19 pandemic, European Central Bank (ECB) Vice President Luis de Guindos noted. 

The official believes the new US administration is unwilling to engage constructively with the EU on common issues. Working together across jurisdictions could enable them to better handle this crisis. Nevertheless, the import tariffs imposed by Trump on several US trading partners only intensify the current predicament, according to Guindos. 

In an interview with the Sunday Times, the Spanish politician stressed that the ECB's future forecasts for inflation and GDP growth are fraught with risk. This unpredictability makes it difficult to assess the regulator's next steps on interest rates.

The consumption indicator in the EU is still low. The ECB Vice President attributes this to citizens not responding to the rise in their short-term real disposable incomes.