Paul Krugman said he was certain the US would return to a protectionist regime in a discussion with Intrakat Group Vice Chairman and CEO Alexandros Exarchou at the Economist conference.
The Nobel Prize-winning economist pointed out that there was assessment failure and predictions at the beginning of globalization about the effects on the regions of the world regarding the economic and social inequalities that were created, but also effects on areas such as the environment, etc.
The point is not to show the benefits of globalization or accelerate its pace, but to have a real impact on the economy, he said.
He also referred to the importance of climate policies, as well as policies related to national security issues and giving space to poorer countries to develop policies in these areas.
P. Krugman referred to the importance of US-EU cooperation on international trade and related issues. Referring to the upcoming elections, he estimated that if D. Trump is elected, the US will return to a protectionist regime.
Exarchou: Europe has not learned much from the crisis
For the future of Europe and the need for the EU to take decisive steps towards tomorrow to protect the economy and citizens, the Vice-Chairman of the Board of Directors and CEO of the Intrakat Group, Mr. Alexander Exarchou.
The Intrakat chief noted that the EU has not learned much from the previous crisis and, as a result, is now facing serious waves of Euroscepticism from its own citizens, which is a result of the disconnect between Brussels’ priorities and the needs of ordinary people.
![Paul Krugman: Under Trump, the US is returning to protectionism 1](https://thegurumedia.com/wp-content/uploads/2024/07/eksarxou1.jpg)
The Intrakat CEO also noted that although the EU is a one-way street for all of us, Brussels should not only emphasize regulating markets, but mainly producing internationally competitive products and services, pointing out that today European products are the most expensive in the world, at the same time Europe imports goods from third countries which, for example, violate human rights and raise serious ethical and competition issues. And he noted that only when the problem touches the European core can the EU react. It reacts, as it did recently, by imposing tariffs on electric cars produced in China in order to protect the European car industry from unfair competition practices.
As Exarchou pointed out, Europe is ageing in mentality and will have to decide whether to acquire a federal character that will have tools to protect the economy and citizens and regulate problems centrally, or whether to continue to act as a single market with ambivalence, with the risk of undermining the vision of a united Europe. And for this reason, he commented, the debate on a new Treaty must be opened now, if we want Europe to face international challenges in a coordinated way, such as the wars that ravage our region.
The head of Intrakat highlighted the Greek example of recent years, characterized by economic recovery. He added that the country’s efforts to emerge from the crisis and avoid bankruptcy are unprecedented, given the fact that it has a huge debt and the strongest currency in the world, and have been crowned with success, thanks to the effort and resilience of Greek citizens.