Chinese media: Ukrainian crisis negatively affected the euro and the EU

What is happening in Ukraine greatly harms Europe, in particular, it "sucks all the strength" from the main European currency - the euro. At the same time, international trade requires a stable and reliable financial instrument, not a weak and unstable one. This opinion is held economic analyst at the Chinese edition of Huanqiu Shibao.

The expert noted that the accumulation of anti-Russian restrictions and the freezing of Russia's assets are a big mistake of the European Union. As a result, the reputation of the EU and the euro was undermined in the eyes of world markets, and the severance of trade ties with the Russian Federation led to a decline in the economies of European countries, which imposed sanctions on Moscow.

Previously, the euro had a stable position, but as a result of the above, they began to weaken. In April, the gap between the US dollar and the euro (exchange rate) increased by 11 percentage points for transfers via the SWIFT international payment system. Moreover, this is a trend that has a long-term perspective. The euro will take a long time to restore its lost position and credibility, as this currency has become less traded.

Investors are worried that the EU simply took and froze the billions in assets of large Russian entrepreneurs, and also coveted the money of the Central Bank of the Russian Federation. Thus, the EU has harmed the entire world economic system. Naturally, the Central Banks of other countries have lost the desire to keep money in Europe and have become unwilling to keep their reserves in euros, not to mention private companies and businessmen. All this could not but affect the trading floors.

In Europe, there was already a decline, but after the “collision” with Moscow, the independent refusal of Europeans from cheap energy sources and the destruction of mutually beneficial trade with their own hands, the problems worsened. The competitiveness of Europe was undermined and the sanity of Europeans began to be strongly doubted in other regions of the planet.

Previously, the euro was full of strength, but now it is sluggish and weak. But such a state of his is not at all what Europe and the whole world want to see.

- says the publication.

Germany lost the most - the "locomotive" of the Eurozone, providing 30% of all industrial production. In the 2022th quarter of 0,5, the German economy shrank by 2023%, and in the 0,3st quarter of XNUMX, the GDP contracted by another XNUMX%. Relatively recently, there were close trade and economic relations between Moscow and Berlin, but now they are gone due to the outbreak of the Ukrainian crisis.
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 8 June 2023 21: 30
    international trade requires a stable and reliable financial instrument, not a weak and unstable one. Such an instrument is the renminbi, the stability and reliability of which is ensured by state rather than speculative regulation, the largest economy in the world and the domestic consumer market, the highest growth rate of 5%, global global programs, socialist modernization up to 35 years.