According to the head of the bloc's regulator, the cost of those losses must ultimately be shared between firms and workers.
"And it is important that there is fair burden-sharing between them, with both accepting that they cannot fully recover the income that the euro area has paid to the rest of the world and the ensuing loss of output," Lagarde explained.
She added that the Eurozone has been hit by an inflation shock that is currently working its way through the entire economy.
"While headline inflation is likely to decline steeply this year, driven by falling energy prices and easing supply bottlenecks,"
Comment: 'Is likely' - there's no reason to believe that the economic situation will improve.
Lagarde concluded, "underlying inflation dynamics remain strong."
The official outlined that an unprecedented series of negative supply shocks that battered the single currency area had been triggered by factors such as pandemic-induced disruptions and the energy crisis evoked by the EU's attempts to build up sanctions pressure on Russia over Ukraine.
On the other hand, she said, the EU member states faced a positive demand shock after the reopening of economies in the wake of the Covid-19 pandemic.
"That favorable demand environment allowed firms to pass rising input costs through to prices much faster and more strongly than in the past," Lagarde pointed out.
Comment: But with the sanctions-induced energy crisis that surge in demand is now falling and businesses are going bankrupt.
She noted that future interest-rate hike decisions would depend on incoming data, above all whether the regulator could see signs that painfully high inflation is headed convincingly down.
"With high uncertainty, it is even more important that the rate path is data-dependent," the ECB chief said. That means "we are neither committed to raise further nor are we finished with hiking rates."
Lagarde pledged to deliver price stability, bringing inflation back to 2% over the medium term at all costs.
Reader Comments
Better energy ideas are just waiting in the wings.....
But "peace" is a choice I reckon.
Psycho Killers!
Qu'est-ce que c'est fa fa fa fah fa fa fa fa fa fahh!
,
And presume you are the same age group like me. The best times of the Talking Heads fell into my twenties.
After the US, now also the Swiss thwarted their plans to crash and take over their banking system ...
The Banking fraternity obviously didn't get the memo that stated the delusional French president was to have a go at Russia, get involved in a unnecessary conflict with Ukraine and be blinkered about the consequences to the energy industry. Leaving the Banks High and dry with falling revenues and an economy on its knees.
If the Banks think raising interest rates will save the day, their as delusional as their president 🤪
Only goes to show what the banks are really for, harvesting the wealth of the population when times are good and screwing the shit out of everyone when times are hard.
When you backstab your allies, which all the west has done. What do you expect. Only way all this ignorant arrogance ends unfortunately. Is a huge heaping of humble pie. And their piece of pie is gonna need to be huge. Massive.
And unfortunately also, most citizens want peace, but rest assured all these arrogant leaders/bankers are not as smart as they or most think they are. Oh no, far from it. So their only solution is war. Save themselves by harming others. Not gonna work this time around. The piper wants his pay and the debt is way overdue.
Script narrative playwright .....
Edit, send to tv company.....
They we go...
media manufactured.
Next...
We go to work...
They bugger our children...party and eat the food we grow for them...
Meanwhile......on twitter....
I am cursing daily in my car (well, on work days), because the cognitive abilities of the average driver seem to have suffered significantly since last year. The difference is obvious - almost each day I get stuck behind what we once called a Sunday driver. Now they are everywhere ... Hundreds of vaxxidents lurking. Perhaps the Russians can sell me a T-54 for cheap ...
The notion of Pavlov’s dogs vs. Scrodinger’s Cat is people even though warned & were informed had to make a choice to VaXX or not. Vacant Chinese cities were used to catapult the original projection of a deadly contagion pathogen propaganda presented as a doors of perception - proof of concept (we accept the version of reality that we are presented) with the concept’s ideation. That first choice they made to decide to VaXX self-identified as Pavlov’s dogs. Scrodinger’s Cat by that clot shot. Illustrating the pathetic state of the human condition. The ARCH-chi-tects hide behind the creative/artistic license of the project’s creative concept of ideation to completion. Hence the concept & notion that all the world’s a rigged stage of legal fiction from cradle to grave.
The only difference is their vaxx-damaged brain with significantly reduced processing capacity, and damaged nerves with reduced motor abilities.
I am somewhat worried - about them crashing into me one fine day ...
So, as we used to say in "safety-training" ----- "eyes on task".
Safe travels to those of us paying attention.
Regards,
Ken