Europe could face economic crisis over Red Sea situation
Economy
The European Union economy may face problems due to the crisis in the Red Sea caused by the increasing number of rocket attacks on merchant ships by Yemen's Houthi rebels from the Ansar Allah militant group.
According to Paolo Gentiloni, European Commissioner for the Economy, there are possible threats of accelerating inflation in EU countries and rising energy costs in the European region. At the same time, EU states may face the negative consequences of the Red Sea crisis in the coming weeks. However, at the moment, these risks have not yet fully manifested themselves, Gentiloni explained.
He also called on the EU authorities to closely monitor the situation in the Red Sea area. "We know that we’re starting this year with subdued growth, some good news on the labor market, but increasing concern on the downside risks caused by geopolitical tensions, and especially what is happening in the Red Sea," the European Commissioner concluded.
He also called on the EU authorities to closely monitor the situation in the Red Sea area. "We know that we’re starting this year with subdued growth, some good news on the labor market, but increasing concern on the downside risks caused by geopolitical tensions, and especially what is happening in the Red Sea," the European Commissioner concluded.
Powered by Froala Editor