The Ukraine conflict is taking a toll on the Euro-zone and it could result in finally pushing it over the edge
- When you couple soaring energy prices with stagnate growth and a growing trade balance with China you have the recipe for disaster
- Inflation accelerated to a record high in May
- Excluding food and energy prices, inflation rose to 4.4% year-on-year from 3.9%.
- This puts pressure on the European Central Bank to increase rates further
The Euro-zone has already endured a lot of problems what it does not need is another refugee crisis this time caused by food insecurity across North Africa or the emergence of an energy-scarce winter as 2022 comes to a close.
- The EU abandoned all structural reforms in 2014 when the ECB started its quantitative easing program (QE) and expanded the balance sheet to record levels.
The EU-China comprehensive investment agreement clearly signifies a significant shift in EU policy towards Asia
- Brussels is leading the EU into an ambush, Europe cannot hold its own against China
- Imports from China to the EU surged by more than a fifth last year to 472 billion euros ($522 billion) compared to 2020
- This widened the bloc's trade deficit with China to 249 billion euros
- China exploits its trading partners by exporting goods at slightly below cost in order to draw manufacturing jobs from other countries
- The ramifications flowing from Italy's deal with China may, in the end, prove to be a deal with the devil
https://brucewilds.blogspot.com/2022/06/the-european-union-is-again-close-to.html
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