Since the beginning of the year, three factors—the dollar-euro exchange rate, Trump's tariffs, and the shutdown that is impeding US government activity—have been exerting pressure on the global economic and financial system, particularly the Western world and the eurozone. However, the most pressing concern in Italy is the dollar-euro exchange rate, which has dropped by more than 15% in favor of the euro. This has a detrimental influence on both European exports and tourist travel from the United States to Europe, notably to the two most popular destinations, Italy and France. It is anticipated that the exchange rate will remain at 1.15 for the next twelve months. Economic, market, and geopolitical considerations have all contributed to the dollar's weakness. The imposition of tariffs, with widely variable but all significant percentages, has accelerated the dollar's decline, significantly increasing economic uncertainty. GDP growth in the euro area — with Spain as the only exception — is expected to remain negligible through both 2026 and 2027, raising the risk of future stagflation.