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High inflation scares leaders

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High inflation scares leaders

governments throughout Europe concerned about public impatience and discontent precision wavemanifested by weekly demonstrations in Germanywith blows to France and manifestations of indignation on the part of supermarket buyers in Italy.

Her recent financial problems Britannia they were prompted by unattainable tax break offers from outgoing Prime Minister Liz Trouss. However, her departure from Downing Street sends a clear signal to European capitals about the fate that awaits those unable to cope with inflation and falling living standards.

The situation is even more critical in continental Europe, where the annual inflation rate is 10.9%, the highest in decades. These inflationary tendencies are exacerbated by the Europeans’ hesitation to take decisive action against them. Insert due to their dependence on Russian natural gas.

The arrival of winter means that the Europeans’ collective withdrawal from Russian gas is affecting every family and threatens to discourage the public from putting up a united front against Putin.

Outgoing Italian Prime Minister and architect of a united front against Russia, Mario Draghi, has warned of the possibility of social unrest if Europe does not agree to a price ceiling on imported natural gas.

“Bell” Draghi

Rising energy prices, Draghi said in September, “will jeopardize the economic recovery, reduce household purchasing power and hurt business productivity.” That moment seems to be drawing near as strikes and protests against punctuality herald a period of social and labor unrest the likes of which we haven’t seen since the 1970s.

“Today’s picture is reminiscent of the period after World War I, World War II and the 1970s. The strike wave was coupled with soaring inflation,” notes Kurt Vandale of the European Trade Union Institute, ETU Institute.

Thousands of anti-punctual street protesters are raising questions about the strength of the united front in supporting Ukraine against Putin.

Pressure in Italy

In Italy, the pressure is growing every day. The unions are demanding that the government allocate more funds to subsidize electricity for households, as well as for businesses such as electricity-dependent potters and farmers who complain about rising fertilizer prices.

Earlier this week, former Prime Minister Giuseppe Conte, politically reborn as a populist advocate for the poor in southern Italy, announced his intention to take part in a Nov. 5 demonstration for peace in Ukraine and a suspension of arms exports to Kyiv. Critics of Conte accuse him of seeking the surrender of Ukraine.

Meloni’s incoming Georgia administration will now have to find ways to limit the impact of inflation on citizens without adding to an already exorbitant deficit. Draghi, as a former president of the ECB, stressed that large deficits scare international markets, lead to higher interest rates and hurt the wallets of Italians. The key question is whether this can be avoided if Europe simultaneously resists the energy sirens of Russia and its cheap natural gas.

In the Baltic

The Baltic states, which have suffered the biggest economic blow since the war in Ukraine, have shown that resisting Putin remains an absolute priority. Estonia, which posted inflation of 24% last month, the highest in Europe, maintained its pro-Ukrainian stance, as did Lithuania and Latvia. However, the loss of purchasing power cannot be without consequences.

Britain, for its part, stood firmly on the side of Ukraine. The collapse of the Thras government has already sparked debate about the size of defense spending and the need to limit it.

In Germany, the ruling coalition is trying to get out of the predicament by increasing government spending. However, no one knows whether this method will bring quick relief or further shake the already fragile pro-Ukrainian alliance. 67% of Germans are concerned about rising cost of living.

Author: JASON HOROWITZ / THE NEW YORK TIMES

Source: Kathimerini

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