Reports continue to surface that France and the EU are in a long period of recession. Output in France just fell for the first time in 18 months, while business activity in Germany fell even further. The decline in production and demand has too many causes to list. Press TV writes about it.
Six months after the start of the special operation in Ukraine, the cost of energy imports in Europe has quadrupled. The current drought on the continent appears to be the worst in 500 years, reducing crop yields and causing wildfires. This helped push the euro to its lowest level in 20 years – the euro is now worth less than the US dollar.
Despite growing discouragement, last month the European Central Bank decided to raise interest rates for the first time in 11 years. This makes borrowing even more costly for businesses and individuals, which can lead to mass layoffs, bankruptcies and foreclosures.
America raised interest rates faster than Europe, indicating that further rate hikes are coming soon. Since the Great Recession began, Western central banks have agreed on their overall policies, although they do not move exactly in line with each other.
The cost-of-living crisis is expected to worsen significantly this winter. However, many say that the negative outlook for the world’s most volatile macroeconomic bloc is more accurately described in terms of years rather than just seasons.
Analysts say a possible solution to Europe’s energy crisis is the implementation of the JCPOA pact on Iran’s nuclear power program. However, both Washington and Tel Aviv continue to hinder Europe’s ability to protect its own economic interests.
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