External sector

The car, a key sector facing an uncertain future

• In Europe, the automotive sector makes a key contribution to economic activity (both directly and through the spillover effect) and has a strong export component. • Therefore, in the context of a slowdown in global trade, the sector has held back euro area growth in recent quarters (accentuated by the regulatory disruptions in the sector). • In the future, the environmental issue and pollution problems in large cities will lead the sector to replace internal combustion engines with electric motors. However, to overcome this challenge, significant technological bottlenecks must...