Eurozone interest rates have skyrocketed amid high inflation and preposterous spending on its proxy war in Ukraine, the EU is edging closer to a devastating recession.
EU leaders are urged to stop fueling the war in Ukraine as Eurozone interest rates hit their highest level since the euro was launched in 1999.
The economic situation in the EU is looking more precarious by the day.
Foreign direct investment has fallen by 80% since 2021; inflation is at 5.3%, well above the 2% target.
So is the European Central Bank, which manages the Euro, losing credibility?
Our credibility on the line is to reach the 2% medium term in a timely manner. And we will do everything we have to do in order to deliver on that.
Christine Lagarde, European Central Bank President
The bank raised interest rates for the 10th consecutive time on Thursday to try and control inflation. It’s very bad news for businesses and millions of mortgage holders.
Bankruptcy numbers were already climbing at an alarming rate and growing tensions with China might place even more pressure on the economy.
It could be, of course, very negative; everything that is a threat on international trade is negative for everyone in economics [sic].
Geoffrey Minne, Economist
The biggest problem though, relates to ongoing tensions with Russia.
We’ve had 11 sanctions packages against Russia, we still see conflict, weapons being delivered, huge amounts of funds being pumped in to keep the war going. But no one is talking about peace negotiations.
Harald Vilimsky, Austrian MEP
It seems a growing number of citizens share that sentiment.
It is time to be talking about peace, not about weapons or providing more financial aid to the war.
Belgian Passerby 01
If the parties could come together and agree a peace that will be wonderful.
Belgian Passerby 02
They keep sending billions of Euros to Ukraine, but with the exception of Viktor Orban, EU leaders insist it’s a price worth paying.
At the same time, poverty and homelessness levels are steadily increasing across the 27 nation bloc, while inflation and interest rates continue to rise with no clear end in sight.
