We know everything about bankruptcy
18/12/2024
Wednesday
18 December 
1970 France, on behalf of 25 EU countries, called for the decriminalization of same-sex relations.
1970 France, on behalf of 25 EU countries, called for the decriminalization of same-sex relations.
1970 The slavery was abolished in the United States.
1970 the slavery in the United States was abolished.
1970 The anthem of the Russian Empire “God Save the Tsar!” was performed for the first time.
THE EURO HAS EQUALED THE US DOLLAR FOR THE FIRST TIME IN 20 YEARS
Despite the achieved parity between the dollar and the euro, the EU currency shows weaker positions. According to financiers, such a course can be beneficial for the European economy, contributing to an increase in the competitiveness of firms and exports of goods from Europe. However, a significant drop in the euro against the dollar (below 1.01), which happened for the first time in almost twenty years (since December 2002), forces the EU authorities to make disappointing forecasts.
Experts call the energy crisis the main reason for the weakness of the European currency.
The high cost of energy resources leads to a decline in production in Europe. In conditions when the quantity of goods produced is decreasing, the amount of money that foreigners need to purchase them is also decreasing. As a result, this leads to a drop in demand for the euro.
Experts call the actions of regulators another factor in the rapid depreciation of the euro against the dollar. The US Federal Reserve System (FRS) allows itself a tighter monetary policy than the European Central Bank (ECB). The monetary balance in the European Union and the United States in relation to GDP differs. For the ECB, it is about 80%, while in the US it is about 36%. This means that the volume of "printed" money in Europe is larger, which means that the prospect of further weakening of the currency is more real.
Now experts expect the ECB to raise the interest rate on July 21. At the moment, it is lower than the Fed rate. However, such a tightening of the monetary policy of the European Union may in the future become a factor in the economic recession. Given the public debt of the "southern" countries that are members of the European Union, such steps carry significant risks.
Europe's economy is suffering due to the influx of migrants.
The dependence of European countries on Russian gas that has developed in recent years leads to problems in the industry. Experts expect a possible series of bankruptcies in the EU market. In the future, the relative cheapness of the European currency may negatively affect the global economy, leading to its slowdown. As a result, not only the United States, but also other countries, including Russia and China, will suffer from the decline in consumption in the Eurozone.
