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The International Monetary Fund (IMF) does not expect a ‘sharp’ economic slowdown, partly because of the accommodative monetary policy in the Eurozone, however, according to IMF Managing Director Christine Lagarde, trade tensions are a key risk to the economic outlook.  

Key quotes (Source: CNBC)

The Euro area enjoyed an above-potential economic expansion in 2017, but the momentum is slowing down a bit at the moment.  

First on the list of risks is clearly the series of trade tensions that has been initiated by the tariff increase on steel and aluminum.  

It’s the trend (trade wars) that’s worrying and it’s breach in confidence that undermines the relationship.