Trump 2.0: The First 100 Days | EMEA

Fiscal Expansion & Rate Cuts to Provide Upside for Europe Government Balance to GDP Ratio Euro Area & German GDP Growth

Impact on CRE

• The euro area’s shift away from austerity toward more expansionary fiscal policy represents a key shift in economic strategy. Higher public spending is set to lift aggregate demand and provide fresh momentum for growth. • With inflation near target and more ECB rate cuts expected, financial conditions will likely ease further. This should lower borrowing costs, boost investment and consumption, and support growth— providing meaningful upside to the euro area’s outlook. • A more supportive macroeconomic environment will improve investor sentiment, leading to increased capital flows into European CRE as well as increased demand across sectors.

2.0

0

-2

1.5

-4

1.0

-6

-8

% Y/Y

0.5

% GDP

-10

0.0

-12

-14

-0.5

2019Q2

2019Q4

2020Q2

2020Q4

2021Q2

2021Q4

2022Q2

2022Q4

2023Q2

2023Q4

2024Q2

2024Q4

2025Q2

2025Q4

2026Q2

2026Q4

2024Q1

2024Q2

2024Q3 Germany

2024Q4

2025Q1

2025Q2

2025Q3 Euro area 2025Q4

2026Q1

2026Q2

2026Q3

2026Q4

Euro area govt balance

Source: Federal Statistical Office (FSO), Eurostat, Moody's Analytics

CONTENTS

Cushman & Wakefield