Berlin-Sana
European economists warned that the possibility of tightening sanctions against Russia and its impact on the European economy may lead to more pressure on the euro, which is already in a bad situation.
And the German newspaper “Deutsche Wertschaftz” quoted experts as saying that “the European currency is now going through a free-falling stage, and its exchange rate against the US dollar has reached its lowest level since 2017,” noting that the dollar will continue to rise against the euro’s descent, as the US Federal Reserve plans to raise Interest rates to combat high inflation.
Amid the uncertainty associated with the possibility of tightening sanctions against Russia and its impact on the European economy in terms of pressure on the euro, experts believe that Europe will suffer from the economic consequences of the Ukrainian crisis more than the United States.
According to Thomas Getsela, chief economist at VB Bank, the euro cannot benefit from three interest rate increases planned by the European Central Bank this year, and said: “In the currency markets, there are great fears of a strong economic slowdown in the euro area or even a recession.” He warned that recession, high inflation and the inability or unwillingness of the European Central Bank to act would be the worst possible scenario.
And Gitsila had warned earlier that the instability of the euro may push citizens to search for an alternative to the official currency, expecting the European Union to witness long-term inflation that could lead to the collapse of the euro.
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