The weakness of the euro will not help the competitiveness of the European Union this time

This time the weakness of the euro will not help the competitiveness of the European Union. The foreign exchange market does not know a magical solution that addresses all the problems of the euro. In Frankfurt, Germany -Source: Bloomberg appears to be parallel to the value of the euro and the dollar has become a matter, and it would be a competitive blessing of the economy -based economy, such as the euro area in normal circumstances. But this time it is different, as the demand for exports by two of the most important commercial partners of the European Union, that is, China and Russia, is limited by internal weakness, which is worse. Even worse, the euro weakness will push the other side of the trade equation. As natural gas prices rise to the highest levels in two years, it is likely that the energy import account for Europe is likely to rise. In addition, the Euro will be the European Central Bank’s ability to quickly reduce monetary policy, which is strengthened. The European Central Bank realizes that it needs a greater reduction in the most important interest rate on deposits, and this has reduced it four times since June. But if it reduces it very quickly, it will only accelerate the fall of the euro, and it can easily cause existential concerns about the joint ability of the coin. It does not help the icy political environment in the largest European countries. While the lending operations of the eurozone have seen two consecutive years of tightening, the scarcity of demand for loans by companies is the most disturbing case. The scarcity of growth increases as parts of the euro area suffer from stagnation, especially in the manufacturing sectors in Germany and France. There must be somewhat strong action to keep the entire euro project on its right path. But regardless of the direction the European Union is taking, it has restrictions and most of it is made. The loss of control over the plight of the European Union- as it is suffocated by a strong US economy supported by financial incentives, enthusiasm for artificial intelligence, and an unusual mix of a form of safe haven, in addition to the only attractive. As a result, the cuff is greater with the rise of customs tariffs and commercial wars. In fact, the opposite of the course of many decades of increased globalization does not benefit the economic model of the eurozone. However, it is easy to increase our pregnancy of pessimism. The behavioral rate model at Bank of America is evaluating the dollar at an unprecedented level of value supply. But strong tendencies need an incentive to change the direction, and no one can guess what the king can stumble, let us not allow you. Finding a rapid solution to the Ukraine War can bring a positive surprise, not only in reducing energy prices, but with regard to the large potential defense boom. The decisive German general election in February could lead to a more assertive mandate to improve spending. Unfortunately, hope is rarely a successful strategy, and with the absence of a final growth plan on the European Union, associated with easier critical conditions, it is difficult to attract a situation that causes the euro to rise. The Super European concession, which is the relatively inexpensive currency that exploits the strong German export machine in fertile Asian markets, no longer serves it. Now the weakness of this currency with the greatest fragility of the European Union appears. But the trade union is still the largest commercial block in the world with 450 million consumers in 27 countries, and in many power, but only if everyone works hard. This article does not reflect the position or opinion of the “East News”, a post quoted by Bloomberg Media, and does not necessarily reflect the view of the Bloomberg editorial or its owners, stories that can interest you in this article