In response to the unpredictable policymaking of U.S. President Donald Trump, Europe has been spurred into action. This has led to increased optimism among European companies, with Germany planning significant investments in defense and infrastructure. Despite the positive momentum, concerns persist about Europe's unresolved issues such as high energy costs, a fragmented internal market, and potential tariffs from the United States. While there has been a surge in optimism, some analysts question the sustainability of this "Europhoria." Euro zone shares have outperformed U.S. stocks since Trump's inauguration, and economists have upgraded growth forecasts for the euro zone. The region's preference for stability and regulatory framework has been highlighted as a strength compared to the uncertainty in the U.S. A major concern for Europe remains the potential trade war with the U.S., with the European Central Bank warning of the negative impact tariffs could have on the euro zone economy.