The fall of the Euro will affect the purchasing power of EU citizens

Image: portal of the mayor and government of Moscow/Alexander Ivanko

In January 2023, the Euro dropped by 1.1 percent, which analysts have called the worst start of the year over the past five years. A further reduction was even more significant, and we are talking about fundamental trends, the newspaper “Izvestia”.

depreciation is contrary to the optimistic expectations of the financiers. No truce in the “trade war” between China and the United States, or the certainty with the UK out of the EU has not exerted sufficient influence on the strengthening of the Euro. Amid this trend reduced the purchasing power of citizens.

a Significant factor that has lowered oil prices and other commodity resources, the epidemic of coronavirus in China. In China there are shortages of supply of goods, and moreover, and reduced demand for products and services from the European Union. The European community is the largest exporter to China.

the Euro also influenced by the current political crises in Europe. Despite the fact that Brexit was generally no significant problems in the countries of the Union, the contradictions between the existing regimes and radical populists. If the trend continues, we can expect changes in the area of economic governance and adjustment to the prevailing political consensus.

Finally, another reason for the negative Euro forecasts experts call the weak development of high-tech Internet industry in Europe. At the moment most of the market occupied by American and Chinese companies, and it attracts significant investment on the us stock market, which strengthen the position of the dollar.

According to preliminary estimates, in 2023, the Euro will not be able to claim the title of world reserve currency, because it is too unstable. It is noted, in particular, the weakening of every symptom of lack of confidence of investors in the economic stability of the EU.

In early February, experts of Bank Nordea Bank shared a negative prognozom relative to the ruble. According to analysts, in the course of 2023, the value of the Euro may reach 71 of the ruble and potentially to exceed 80 roubles in the following. In the long term, investors will get rid of risky assets.

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the Ruble fell against the background of lower key stuctures Euro crossed the mark of 70 rubles for the first time since December 16