(Finance) – “Russia’s war against Ukraine has unleashed a massive shock to the global economy, especially to the energy and food markets, and the economies of Central, Eastern and South-Eastern European countries (Cesee) have been particularly exposed, with inflation peaking at 13%. Now geopolitical tensions risk accelerating the second change in the global landscape: weakening global trade. A dynamic to which Europe is vulnerable”. That’s what she said ECB President Christine Lagarde opening the ninth ECB conference on the 21 Cesee countries (Central, eastern and south-eastern Europe) which also include Ukraine.
“Since the financial crisis, trade growth relative to global GDP has plateaued. And we also see levels of protectionism rising as countries reconfigure their supply chains to align with new strategic goals. Over the past decade, restrictions sales have increased tenfold,” he explained Lagarde.
The Cese region (which includes, among others, the Balkans, the Baltics, Poland, Hungary, Turkey and Ukraine) and Europe in general “may be vulnerable to this change. Last year, trade in two third of Cese countries was higher than the eurozone average. And while other major economies, such as the US, have seen trade plummet by the pandemic, in the eurozone it hit a record high in 2022,” added Lagarde.
In this scenario, according to Lagarde, it is therefore necessary to strengthen openness within our areas, increase collective energy security and continue with the defense and dissemination of common values, because theattack on Ukraine “it was also an attack on European values of respect for international law and human rights”.