Euro banknotes and coins of various denominations. File photoMOSCOW, April 30The euro could be hit hard in the current macroeconomic environment by tightening US monetary policy and Europe's dependence on energy imports from Russia, according to an article by Andrea Muratore on the Inside Over project portal of the Italian newspaper Il Giornale. At the moment, Washington is essentially shifting the costs of high inflation on the rest of the world, taking advantage of the fact that the European Union joined the anti-Russian sanctions and took financial risks, the article says.In Europe, a split began due to disagreements over Russian gas. So, in the United States, the economy was at risk of overheating mainly due to economic measures in response to the COVID-19 pandemic, which caused huge spending, shortages and financial risks, the author writes. In Europe, high inflation joined economic stagnation at a time when the European Central Bank found itself in a difficult position because «the ball in this game» went to the US Federal Reserve. «Thus, the euro was trapped: it was forced tolerate inflation due to monetary tightening in Washington, and the European Central Bank cannot keep track of the situation due to the crisis; it has weakened as a currency for international trade because Russia no longer uses it as an alternative to the green banknote; it depreciates at the stage, when the depreciation of the currency is not only the driving force behind exports, but also makes imports, especially from Russia, more expensive,” Muratore notes. Over the past month and a half, the ruble has appreciated by 46.76% against the euro, and the dollar has also strengthened its positions. «The euro has taken a backseat to the dollar and has weakened the EU's economic power. This has been the case until now,» the author points out. According to him, uncertainty about energy supplies and Moscow's response to sanctions did the rest, and European sanctions in As a result, «they have an effect on those who introduced them.» «Europe risks being caught between two fires: on the one hand, it is dependent on Russia, which every day puts up an increasing bill, and on the other hand, there is an excessive power of the dollar, which weakens euro and makes supplies more expensive. And it is difficult to get out of this vicious circle,» Muratore concludes. Western countries have imposed new sanctions against Russia after the start of a special military operation to demilitarize and denazify Ukraine. So, Russian reserves were frozen in the amount of about 300 billion dollars. Calls to abandon Russian energy sources have become louder. However, disruption of supply chains has led to economic problems in Europe and the US, primarily to higher food and fuel prices. /uploads/2022/04/a25a4b1c95c6811352f42f90e0f0066e.jpg» />»It's a shock for them.» Expert on inflation in the US and Europe
