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The EU currency could be hit hard by prolonged inflation. This was told by Thomas Mayer, who previously held the position of chief economist at Deutsche Bank.
According to Mayer, in the near future, the EU expects a long rise in prices that can destroy the euro. The European Central Bank could find a solution to the problem, but in the current situation, its capabilities will be limited, the expert believes.
The consequences of rising prices will affect not only the European economy, but also the social and political environment. So, according to the expert, in the 20th century, the National Socialists came to power in Germany on a wave of dissatisfaction with high inflation rates.
The economist believes that if the trend continues for a long time, more and more Europeans will abandon official money in favor of unofficial ones.
Earlier, the Financial Times reported that the recovery of the global economic system after the pandemic will be longer than expected due to Russia’s special operation in Ukraine. The newspaper’s analysts believe that almost all countries this year will face a slowdown in production and rising prices.
