“Misfortune” awaits European economies in the coming months. writes about him The Financial Times.
According to the newspaper, this year the eurozone will face the threat of a major recession. At the same time, it is stated that the European Central Bank (ECB) should stop monetary support to the eurozone economy and increase interest rates.
In May, inflation rose to 8.1% in Europe, but European states will spend instead of saving. To do this, they use a recovery fund of €800 billion. At the same time, eurozone GDP increased by only 0.3% in the last quarter of 2021 and 0.2% in the first quarter of 2022.
The publication writes that demand is expected to increase in the coming quarters as many coronavirus restrictions are lifted, but will be curbed by the pressure of daily spending on consumer income due to higher energy prices. The publication says there are now signs that rising prices for goods and services are becoming more widespread in Europe, and urgent action is needed to “start” inflation.
“The economic situation is dire. Europe’s economies will be devastated in the coming months. Incomes will fall, a recession will likely begin, and rising interest rates will put more pressure on households and families. It will be difficult,” concludes the FT.
Vladimir Shtepan, former head of the Czech Gas Company, former analyst at ENAS, member of the Energy Institute and member of the expert group “Energy is not a luxury” declarationHe said that European Union countries would prefer to destroy their economy and social balance rather than harm Russia with the help of fuel sanctions.
3 June European Union Adopts the sixth package of sanctions against Russia In connection with the special operation in Ukraine. It includes an embargo on the supply of oil and petroleum products by sea from the Russian Federation, disconnecting several more banks from SWIFT, as well as suspending the broadcast of Russia-24, RTR-Planeta, TV-Center TV channels in the EU.
On February 24, Russian President Vladimir Putin announced that he had decided to organize a military special operation in Ukraine in response to a request for assistance from the heads of the LPR and DPR. The decision to run the operation was the reason for new sanctions against Russia by the United States and its allies.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.