Lagarde warns EU states: “Let’s hope for the best but prepare for the worst”
The growth in the eurozone has been almost “stagnant” in the first part of 2023. In a nutshell, it was the drop in energy prices, the easing of supply bottlenecks and the support of fiscal policy for businesses and households that “kept the situation going”.
This is what emerges from the words of the president of the ECB, Christine Lagarde, during the hearing in the Economic and Monetary Affairs Committee of the European Parliament, which has on‘inflation he added: “Underlying inflationary pressures remain high and there is no clear evidence that it has peaked.” In this regard, in fact, the objective – according to what the president declared – would be a “timely return” to the medium-term objective of 2%. On the other hand, stabilizing prices would benefit employment in the medium term and consequently reduce inequalities; a fundamental goal if we consider the food pressure that weighs heavily on low-income families.
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