As inflation soars, Brussels issues a warning: ‘End of the euro!’ Nexit calls are on the rise.
As Southern European countries grapple with mounting debts, rising inflation has sparked calls for the Netherlands to leave the EU.
Concerns about rising inflation and rising coronavirus infections weighed on European stocks on Friday, while investors were unsure how the Federal Reserve’s plans to tighten policy would be affected by the weak US payrolls data.
Last month’s data revealed that eurozone inflation hit a new high, putting more pressure on the European Central Bank to raise interest rates this year.
Nexit campaigners issued a warning about the eurozone’s stability in light of the alarming data.
“With high inflation, government debt can’melt,” according to Nexit Denktank analysts.
“Southern European countries with high debts, such as Greece (210 percent) and Italy (156 percent), have high inflation, which is in their and the euro’s best interests.
“Dutch debt is low, but the euro prevents them from changing course.”
“If Italy defaults, the euro will be terminated.”
“Their national debt is far too large to be saved in the same way that Greece’s has been saved.
“This was stated by Jeroen Dijsselbloem (former President of the Eurogroup) and confirmed by EU law professors.
“Nexit,” he says.
In an attack on the Scottish lockdown, Sturgeon has been compared to Hirohito.
The STOXX 600, a pan-European stock index, ended the week 0.4 percent lower.
As countries grapple with an Omicron-led rise in COVID-19 cases, the European travel and leisure sector dropped 1.6 percent and was among the worst performers for the day.
The STOXX 600 index has dropped 1.6 percent since Wednesday, as heavyweight technology stocks have been battered by expectations of higher interest rates.
This week, the sector was the worst performer, losing around 4.5 percent.
The Fed’s hawkish signals have also hurt the stock market.
While the Fed’s stance was somewhat undermined by Friday’s weak US payrolls data, analysts said rising wages could feed inflation and force the central bank to tighten policy.
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“Inflation is the Fed’s main concern, and they are going to proceed with rate hikes and possibly balance sheet run-off in order to remove monetary accommodation,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said.
“Today’s report isn’t likely to sway the Fed’s decision.”
Higher interest rates have boosted European bank stocks.
“News from the Brinkwire.”