The current events of the Middle Eastern conflict have deepened a greater fear amongst economists in discussion of the European Union’s economic revival.
Discussions of the possible economic repercussions are set to halt and alter the monetary progression the union has made since the coronavirus pandemic hit leaving countries in a damaged state.
Although oil market companies like Pickering Energy Partners are “nervous, not terrified” it leaves European citizens uncertain in their ability to comfortably afford the possible inflation that could arise this upcoming winter.
European Economic Pressure:
Uncertainty spreads across Europe due to the continent’s heavy dependence on imported energy such as oil and gas which could be affected further if the conflict amplifies.
Europeans are already displaying their distress on social media platforms, one said “we have winter coming up. Europe is going to be suffering” another added “more economic pain for us peasants (we are feeling it in Europe too)”.
The effect on Europe could lead to another rising cost of energy, that set economies into inflation and left citizens struggling last autumn.
Henning Gloystein, director for energy, climate, and resources at the Eurasia Group think tank, says “the conflict hasn’t yet impacted any oil supply at all” then later on opens up to the possibility of Europe witnessing “oil prices [going] through the roof”.
Fear rushes through European authorities with the possibility of a prolonged war reversing the strenuous gains on the European progression and inflation fronts.
Global Economic Pressure:
Bruno Le Maire, the French Finance Minister, states “the world economy has entered troubled times because geopolitical tensions are the real economic risk” highlighting the global threat the conflict poses.
He continues by adding “any escalation in the region (Israel) would have, of course, significant impact on global growth and on global prosperity” determining the rate of economic progression will only weaken the more intense the conflict becomes.
Whilst officials reassure the public that there has been no evident change caused by the Israeli war concerns of the possibility are still held over European economic progression.
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