Trump’s threats have jolted Europe

US President Donald Trump's erratic policymaking has given Europe an unexpected spur to action, but any sense of “Europhoria” about the region's chances of turning this moment into a longer-lasting revival is likely premature.

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Trump's threats on tariffs and questioning of America's future security role in Europe have drawnanenergeticresponse, perhaps best sym- bolised by Germany’s plans to spend hundreds ofbillionsof eurosondefence andinfrastructure.

Some European companies are becoming more optimistic about sales, while growth projections for the eurozone economy have been upgraded. The euro has risen, and investors are ditching US stocks for their long-neglected European counterparts, according to Reuters.

Yet while some analyst notes nowinclude the phrase “Make Europe Great Again” - a play on Trump's MAGA slogan - the surge in optimism ignores Europe's unresolved problems: high energy costs, a fragmented internal market, and looming tariffs from its biggest customer, the United States.

“Is the Europhoria justified?,” asked Holger Schmieding, an economist at Ger- manbankBerenberg. “The more positive outlook for Europe makes sense. But as usual, the sudden swing may be a little overdone in some cases.”