Inflation and the war in Ukraine are a very serious problem for Italians.
On several levels, this major international crisis affects ours country and makes it economically weak.
Families are finding it increasingly difficult to move forward e businesses are in serious danger of closing.
The war of coins and rising costs
L’increase in the cost of raw materials it is a major problem for both families who find it difficult to shop and pay their bills both for companies that often produce almost without margins if not at a loss.
A strong paradox of this war is the issue of coins. Russia is in great economic difficulty and according to some it would even be close to default. Yet his currency, the ruble, is very strong. Bloomberg points out how on 22 coins tracked since the beginning of the year even the ruble is the highest growth ever. In this 2022, despite the war, the ruble has grown more than the dollar.
Strong ruble, weak euro and dependence on gas
There are many reasons behind this apparent paradox, but one is due to the fact that Putin demands the gas payment in rubles. On the other hand, however, we also have a very weak euro. In fact, in exchange for the dollar, the euro is at its lowest in 20 years. So despite Russia is losing the war in Ukraine it is Europe and therefore also Italy that pays the price in a profound way. Current accounts of Italians are eroded by inflation, the purchasing power of families is becoming increasingly narrow and there is now open talk of a risk of recession for our country as well as for all of Europe.
The end of the Euro?
But what if the euro gets weaker and weaker could it be the end of the single currency and of Europe? It is certainly too early to make such speeches, however, what is happening in Ukraine it highlighted a strong weakness on the part of the European continent which today pays a very important cost to this war. Many businesses and many families protest vigorously against the high costs of war yet paradoxically, even if the war ended tomorrow, which is highly unlikely, the effects on inflation would be lasting and certainly would not die out anytime soon.
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