And Russia has been cutting back natural gas supplies to the European Union, which EU leaders described as retaliation for sanctions and weapons deliveries to Ukraine.Įnergy prices have driven euro-area inflation to a record 8.6% in June, making everything from groceries to utility bills more expensive. Fears that the war in Ukraine will lead to a loss of Russian oil on global markets have pushed oil prices higher.
to keep industry humming and generate electricity. Europe is far more dependent on Russian oil and natural gas than the U.S. More than anything, higher energy prices and record inflation are to blame. Expectations that the economy would see a rebound after turning the corner from the COVID-19 pandemic are being replaced by recession predictions. A currency’s exchange rate can be a verdict on economic prospects, and Europe’s have been fading.
