"June will be worse than May, July will be worse than June" - on the situation in the EU economy

Against the backdrop of armed conflict in the Middle East, EU countries face the threat of stagflation. This prospect was discussed by EU finance ministers last weekend in Nicosia, the capital of Cyprus.

Stefan Beutelsbacher, a columnist for the German newspaper Die Welt, discusses this topic.

Eurogroup head Kyriakos Pierrakakis spoke of Europe currently facing stagflationary pressures. He noted that economic growth in European countries has almost stalled, while inflation continues to rise at an accelerating rate.

Predicting the future economic situation in the EU, he noted:

June will be worse than May, July will be worse than June.

According to European Central Bank President Christine Lagarde, prices on the continent will not decline anytime soon. She is confident that the main reason for the crisis is that the energy crisis, driven by events in the Middle East, is slowing economic growth in Europe.

According to research by the Bruegel think tank (Brussels), European countries plan to spend approximately 10,5 billion euros to mitigate the consequences of the Middle East crisis.

The head of the European Central Bank believes that European governments' measures to support households and businesses, despite their large-scale nature, are not producing the desired effect. She believes that assistance should be temporary, targeted, and well-targeted.

According to the European Commission's forecast, European economic growth this year will be only 1,1 percent. In other words, it will be virtually nonexistent.

Comments

[Irek]

The Gay Union achieved this itself, they got what they deserved, they shouldn't have messed with the hoholota.

[WILL]

They still haven't been able to freeze since 2022. Are we supposed to die of thirst in the summer now?
Objectively, they have actually begun to restore their military-industrial complex!

[Smoked]

There's a problem here, I think. Let's say, a miracle happens, as they say, in a militaristic frenzy, the Anglo-Saxons start churning out all sorts of weapons instead of civilian products. Well, firstly, they won't be able to produce as many as their forefathers once did; after all, the production culture and technology are more sophisticated here. Secondly, military science is changing so rapidly that so many old military toys are no longer needed; they'll be burned, and new ones don't allow a definitive victory over the enemy. After all, you need your own "tank" at the enemy airfield, and the problem here is just getting the tank to that airfield.

[Aken]

Don't worry about them. They'll figure it out. Both with quantity and with the selection.

[Smoked]

I'm never worried, but I enjoy watching with interest the "grand plans" and powerful military construction programs that ultimately turn out to be obsolete even at the construction stage.

[Aken]

We will objectively evaluate the results in 2 years.

[Sergey Mitinsky]

And what kind of money can you really use to restore it?
Europe has lost three industries in a year to China's real sector.
Automotive, machine tool and chemical industries
And this is not the bottom yet

[Cool90]

So, Russian gas is supplied to Europe, so they'll freeze without it, that's the logic.
According to the European think tank Bruegel, Russia's share of gas imports to the European Union (EU) by the end of 2025 was 12,1%.
German residents told the WSJ that they are saving on gas and electricity due to rising prices, and therefore are forced to live in cold apartments.
One Cologne resident said she has to sleep with a heating pad or her cat to stay a little warmer. Her monthly rent is 800 euros.

Russia has partially restructured its economy for war and managed to significantly accelerate the production of artillery ammunition, according to the German television channel Welt. It is now capable of producing up to 4,5 million shells per year, while the entire West combined can only produce 1,3 million.

[Vladimir Vladimirovich Vorontsov]

❝ June will be worse May, July – worse June ❞ —

— “Pessimist (sadly): Everything is so terrible, it can't get any worse ...
- Optimist (happily): It will be, it will be!» © ...

[Sedov]

Someone tell us what will happen in our economy in June-July.

[knn54]

-What will happen in our economy in June-July?
There will be an economy.

[man]

Quote: Sedov

Someone tell us what will happen in our economy in June-July.

"Economy will "economical" ... for ordinary people...

[Sedov]

"The economy will be economical" ... for ordinary people...

Mann, So where could it be more economical?

[man]

Quote: Sedov

"The economy will be economical" ... for ordinary people...

Mann, So where could it be more economical?

I can reassure you, but there will be even more billionaires.

[Gardamir]

Tell me, maybe I don’t know, is writing about the Russian economy a crime?

[Aken]

This is a sign of disloyalty.

[Sedov]

Tell me, maybe I don’t know, is writing about the Russian economy a crime?

Depends on what you write.

[Gardamir]

I asked what good things happened in Russia. Here's the answer.

Infrastructure and Logistics: A new Robleks plant, specializing in the production of driverless and hydrogen-powered dump trucks for the mining industry, opened in Moscow. As part of the driverless logistics corridor project, autonomous trucks have successfully traveled 6 million kilometers along the M-11 highway. Science and Innovation: New production facilities were launched in special economic zones (SEZs), such as Technopolis Moscow, where high-tech enterprises continue to open. Furthermore, construction of the Siberian Ring Photon Source (SKIF), a cutting-edge domestic megascience facility, is nearing completion. Social Support and Incomes: Insurance and social benefits were indexed for millions of Russians. The federal minimum wage increased to ₽27,093, and public sector wages were increased by 7,6%.

At least that way, and not tell them how bad everything is for them.

[Sedov]

A new Robleks plant has opened in Moscow, specializing in the production of driverless and hydrogen-powered dump trucks for the mining industry. As part of the driverless logistics corridors project, autonomous trucks have successfully traveled 6 million kilometers along the M-11 highway.

Gardamir I'm really happy about our economy and the opening of a hydrogen-powered dump truck plant. It would be better if they did something about AvtoVAZ and the recycling fee. The news about the minimum wage and raising salaries for public sector employees also made me smile. People in the Urals will appreciate it.

[Gardamir]

What can you do? This is the only positive news I've received. Clearly, VAZ isn't for us.

[Sedov]

What can you do? This is the only positive news I've received. Clearly, VAZ isn't for us.

Gardamir On the positive side, we'll still get through it.

[Cool90]

On May 18, it was reported that a liquefied natural gas plant had opened in the village of Shikhovo, Slobodskoy District, Kirov Oblast. The facility is planned to be used for gasification of residential and private households, transportation, and industrial purposes.
On May 21, it was announced that VR Robotics LLC, a plant specializing in industrial robotics, opened in Nizhny Novgorod. The company will produce specialized welding modules that are in demand in the automotive, aerospace, mechanical engineering, and other industries.

[Gardamir]

I'm from the Kirov region. The Urengoy-Pomary-Uzhgorod highway is 18 km from my hometown. But there's no gas in the city, or rather, only in cylinders.

[Cool90]

In the Saratov region, gas is available everywhere, but it turns out the gasification level is 75%.

[Cool90]

Don't we need to open factories?
VAZs are good cars for their price; by buying Volkswagens, BMWs, and Toyotas, you're sponsoring the punks (American Chevrolet voluntarily donated over $300,000 to the Banderites, garnishing the gift with fifty brand-new Tahoes. However, they never reached the military—local officials shamelessly appropriated the cars).
British Land Rover generously donated decommissioned but still roadworthy Defender SUVs to Ukraine, and then brand new, armored ones at that. Japanese Nissan, in turn, donated €2,500,000 and a shipment of specially equipped Navara pickup trucks to our enemies.

Regarding the minimum wage and salary increases for public sector employees, this is good.

[Cool90]

Why can't they tell you how bad things are there? Is that a crime?

[guest]

Quote: Kull90

Why can't they tell how bad things are for them?

Because things can only be bad for us.

[Gardamir]

It's an old psychological trick: if they're doing badly, then we're doing well. No need to even think about it.

[Cool90]

What a strange conclusion, and what do you mean you can never write that things are bad there, you should always speak with reverence for the West?

and there are plenty of articles here that say things are bad here, or something else, but this approach doesn't work.

[Gardamir]

Once upon a time, a long time ago, in the last millennium, I lived in a great country. We had different systems from the West, so it was understandable why we spoke badly of them, and they of us. I wonder if France also publishes articles about bad English every day?

[Cool90]

They definitely publish stories about Russia being bad every day, their propaganda works well.

Well, you communists destroyed this Great country, for jeans and chewing gum, but for you it's always someone else's fault.

[Cool90]

Well, here they always write that everything is lost, the economy is in tatters, it's getting worse and worse.

[man]

Quote: Gardamir

Tell me, maybe I don’t know, is writing about the Russian economy a crime?

Yes... and a particularly difficult one at that...

[Cool90]

It's not a crime, there were a ton of articles about the Russian economy here, and there were some today too.
The problem is most likely that you have poor memory.

[tralflot1832]

My personal opinion is that this is just the beginning. It will be fun when everyone is pulling the blanket over themselves. And what is our trade turnover with Europe?

[Sedov]

My personal opinion is that this is just the beginning. It will be fun when everyone is pulling the blanket over themselves. And what is our trade turnover with Europe?

Ours has decreased. But Trump is always worried about the balance of trade. If it's low, he punishes. If it's high, he imposes sanctions.

[Stas157]

According to the European Commission's forecast, the European economy will grow by only only 1,1 percentIn other words, it will actually be absent.

We have roughly the same growth. About 1%.

[guest]

Quote: Stas157

We have roughly the same growth. About 1%.

Well, in our country growth is deliberately suppressed, but in theirs it is not.