Russia‘s war in Ukraine is blowing a huge hole in the Eurozone economy, as inflation surges amid the soaring prices of everyday items for hundreds of millions of households. A near chronic shortage of gas and oil from Russia into Europe has sent prices spiralling, worsening an already desperate situation around the cost of living crisis. Eurozone inflation has skyrocketed to a record high of 8.9 percent, with more expensive energy blamed on the increase from 8.6 percent in June, as the fallout from Russia’s war in Ukraine continues to bite.
The Eurozone economy did grow at a much faster pace than expected in the April to June period, but experts have warned this could soon evaporate as higher prices, reduced Russian gas flows and supply chain issues trigger a mild recession.
Last month, the Euro fell to parity against the US dollar last month for the first time in more than 20 years. It has bounced back to €1.03 but is still massively short of the €1.18 hit nearly a year ago.
Eric Noirez, a prominent EU critic and member of the Generation Frexit campaign in France, told Express.co.uk: “The Euro is a system that has reached the end of its tether.
“But this is not very surprising, since the Euro has always been a totally dysfunctional monetary system, which the Europeanists have wanted to keep alive at all costs, through a dogmatism that is truly irrational.
“Today, the people who make up the EU are simply about to pay the price of this political choice, which bore the seeds of disaster within it.
“The Euro has pushed most of the countries that have adopted this inept currency into a deadly dynamic of general impoverishment and insecurity, locking them into a vicious circle, since this impoverishment has also resulted in an explosion in the cost of social benefits, a reduction in tax revenues and therefore a colossal debt.”
Mr Noirez launched a furious outburst against those he brands “Eurofanatics”, adding: “Where common sense and pragmatism should have led to stopping the aberration that is the Euro, the ‘Eurofanatics’ preferred to persist in their error and to keep the Euro alive at all costs.
“Rather than saving the standard of living of the people, the Eurofanatics preferred to save the Euro, and they have done this in the worst possible way.
“Their policy has consisted of massive monetary creation, and this in a totally unreasonable way.
“In relation to the GDP and real economic activity of its territory, the European Union is the sector on the planet where the most artificial money has been created in recent years. An absolute madness!”
Charles-Henri Gallois, President of Generation Frexit, warned the European Central Bank (ECB) faces a “huge dilemma” and that an attempt to tackle inflation could lead to a “Eurozone collapse”.
The EU critic claimed it was a “mistake” to save the euro and it will “die sooner or later”.
But he also said the bloc’s crippling sanctions against Russia are doing more damage to Europe and warned if this isn’t reversed, the continent could plunge towards “the biggest financial crisis in its history”.
Mr Gallois told Express.co.uk: “The inflation in addition to current low interest rates and high public debt is quite explosive.
“The ECB has a huge dilemma. If they really want to tackle the inflation, they will need to stop the QE and increase interest rates.
“If they do so, it will lead to eurozone collapse as the rates will surge in Southern Europe.
“If they let inflation go, it will lead to massive strikes, social and economic troubles as we are currently seeing in the Netherlands.
“The recession is obvious. The higher energy cost will lower the demands for all the other products all the more that the other products’ prices are increasing as well.
But he further warned: “It was a mistake to save the euro. The euro is badly built from the beginning and will die sooner or later.
“Economic sanctions that hit you more than Russia is totally stupid.
“I’m against Ukraine invasion but we should stop sanctions and focus on a peace to avoid Europe suicide.
“If we don’t do it, Europe will face maybe the biggest financial crisis of its history.”