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The European Union began to fear recession and stagflation

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©Xinhua/Zheng Huansong

Due to the economic pressure that hit the EU from different sides, the European Central Bank is at risk of facing recession and stagflation, “which everyone is so afraid of.” About it according to Bloomberg with reference to investors and heads of European companies.

“Recession is a word that central banks and political leaders are trying to avoid. According to investors and company leaders, the danger of a recession is real, especially in Europe,” the article says.

The agency recalled that the heads of major financial institutions, including JPMorgan Chase and Goldman Sachs, had already warned of a possible recession in Europe. The main danger is the continued high inflation, the crisis in Ukraine and the associated energy crisis. However, it is noted that the European Central Bank is optimistic and hopes to find solutions to stimulate the economy during the crisis.

Earlier, Greek Prime Minister Kyriakos Mitsotakis said that EU should be wary of sanctions against Russia. The politician believes that they can harm the EU countries more than the Russian Federation, since the European economy cannot completely abandon Russian natural gas.

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