Europe has recorded a sharper rise in political instability than any other region since 2020, according to our latest research. As it juggles intensifying geopolitical competition, trade disruptions, demographic pressures, the ongoing cost-of-living crisis and fiscal belt-tightening, our analysis signals that greater unpredictability and widening political divisions have the potential to become an entrenched feature of Europe’s political landscape, generating new costs and uncertainty for business.
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