Eurozone inflation hits new high as growth slows amid Ukraine war
Al JazeeraNov 27, 2021
Eurozone Economy Keeps Growing but Recession Risk Looms
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Image copyright: Reuters [via Al Jazeera]
The Facts
According to official data, skyrocketing energy prices led to inflation soaring by 7.5% for the Eurozone in April, as the war in Ukraine hit Europe's economy hard.
France's economy unexpectedly ground to a halt, recording zero growth as supply chain disruption and higher energy costs held back activity.
The Spin
Pro-establishment narrative
The war in Ukraine has brought Western economies to the brink of recession - a level of severity catalyzed in the Eurozone by the sanctions on Russia. Nevertheless, the West has a moral imperative to maintain pressure, and there's a real possibility that progressive sanctions might limit economic fallout in North America and Europe in the medium term anyway.
Establishment-critical narrative
The highly indebted world economy is in no healthy condition to cope with the prospect of endlessly excluding Russia from international trade. Only the Kremlin itself can end the war and accompanying economic uncertainties, not sanctions. Russia is self-sufficient and this isn't sustainable.
Narrative C
The real losers of the Russia-NATO conflict are the world's poorest countries, which are the ones bearing the brunt of the economic fallout. Rising commodity prices in nations from Peru to Sri Lanka have triggered violent protests which, in some places, have spiraled into political turmoil.
