The EU’s economic woes [What Think Tanks are thinking]

Briefing 07-10-2022

Russia’s war on Ukraine has threatened to undermine the European Union’s economic recovery from the pandemic. Most EU Member States had returned to growth after two years of COVID, with the help of the massive Next Generation EU fund, but the military conflict brought about a steep rise in the prices of food and, especially energy. The resulting surge in inflation has forced the European Central Bank and other central banks to raise interest rates, boding ill for future growth. Rate hikes by the US Federal Reserve and global financial volatility have pushed the euro below parity with the US dollar. On a positive note, EU unemployment remains relatively low. This note gathers links to the recent publications and commentaries from many international think tanks on the economic situation in Europe. Some earlier publications on inflation and growth can be found in a previous edition of the ‘What Think Tanks are Thinking’ series.