June 15, 2024

Columbus Post

Complete News World

EU in inflation woes: Italy’s biggest problem child

There’s more to the EU than the common cold. She is so sick that she is afraid with every trembling step. This could choke the economy and push the Union into recession. Especially in the case of Italy.

On Thursday, the European Central Bank (ECB) raised interest rates for the first time in eleven years. This is significantly slower than the US or Switzerland. The reason: Many EU member states are in massive debt. This severely limits the ECB’s room for manoeuvre. Because high interest rates can bring indebted countries to the brink of national bankruptcy. It is now becoming more expensive for them to take out new loans. Those who are already heavily indebted have to pay additional risk premiums for new loans.