“The European Council last week approved the possibility of capping Russian gas imports. This measure would limit the rise in inflation, support disposable income and reduce our financial flows to Moscow. Of course discussions are still ongoing and there may still be a long way to go,” Draghi continued.
Against expensive energy, the EU must consider using tools such as
Secure
“That helped us to recover quickly from the pandemic,” said the Prime Minister. “A similar instrument, this time focused on energy,” Draghi added, “could give vulnerable countries more space to help their citizens in times of crisis, increase popular support for our joint sanctions effort, and contribute to conservation.”
Financial stability across the euro area
“.
“In addition to energy, food prices also help push up inflation in even the richest countries. In the euro zone, May food prices rose 8.1% yoy, the increase is only about half, a significant jump but much less than in the United States. “In some countries – said Draghi – this so-called
‘core inflation’
it is still within limits: in Italy it was 2.9% in May. Unemployment is just under 7% in the euro area, while consumption remains below pre-pandemic levels. These are all signs that there is still spare capacity in the economy. So, at least in the European Union, rising inflation is not just a sign of overheating, but largely the result of a series of supply shocks.
Ukraine, Draghi: unlock ports, avoid food disaster
– “Efforts to avoid the food crisis must begin with the release of the ports and the thousands of grains that lie there. The United Nations mediation effort is a significant step forward, unfortunately it is the only one,” said the Prime Minister the war in of Ukraine, stressing that the grain blockade “raises prices and causes a global catastrophe”.
Determined to help our citizens like Ukraine
– “For our efforts to be effective, they must be long-term and sustainable
Include emerging and developing countries. We must combine the determination shown in Ukraine with the same determination to help the citizens themselves and those in the world’s poorest countries, especially in Africa,” Draghi continues.
Sanctions hit oligarchs and the Russian economy hard
– “The G7 and the EU have shown remarkable unity and solidarity by supporting Ukraine and pressuring Russia to resume negotiations. The EU alone passed 6 packages of sanctions that have dealt a serious blow to pro-Kremlin oligarchs and key sectors of the Russian economy.”