Experts state that the European Central Bank should act immediately. Inflation in the “Euro Zone”, which consists of 19 countries that use the Euro currency in Europe, reached 7.5 percent in April, the highest level since 1997, when statistical studies in this area were started. output. The Ukrainian War and the associated rising energy prices were influential in the record inflation. Inflation in the Euro Zone, which is trying to get rid of the negative effects of the coronavirus epidemic, was announced as 7.4 percent by the European Union Statistics Office (Eurostat) last March due to the negativities caused by the war.
It is reported that in the Euro Zone, where approximately 343 million people live, energy prices increased by 38 percent on average due to the Ukraine War and the related global energy crisis. While high inflation is among the main agenda items of politics and economy in many European countries, many countries are taking various measures to protect households, especially against rising energy prices.
If the German government’s bill to provide a one-time grant of 300 euros a year to a family of four is approved by the Bundestag and state parliaments, these payments will most likely be made in September.
The main reason why many European countries do not include natural gas and oil imports within the scope of the sanctions imposed on Russia is that such a decision will most likely drive up fuel, energy and gasoline prices.
European Central Bank’s call to “action”
Many economists are calling on the European Central Bank to take action, as the abnormally high prices put pressure on consumers and the economy in Europe.
Volker Wieland, Member of the Economic Experts Board in Germany, stated that the European Central Bank should take action against the record high inflation rate and said, “The reality is that inflation has exceeded expectations. The Central Bank has been waiting for a very long time.”
Wieland, professor of economics, who gave an interview to Börsen-Zeitung, said, “We have seen a comprehensive increase in inflation in the Euro Zone for a long time. However, there is still an effort to revive the economy in monetary policies.” Expressing that the inflation for Germany, which was announced as 7.4 percent in April, is expected to remain at these high levels for a longer period of time, Wieland emphasized that it is not unlikely that the inflation rate in question will reach double-digit figures if the natural gas supply is cut.
Wieland said, “This is why it is so important for the European Central Bank to finally act decisively,” and said that he could not understand why the Central Bank still insisted on a zero and negative interest rate policy when inflation values exceeded 7 percent.
AP,dpa / ET,UK