The European Commission has therefore decided to postpone until mid -April the application of the first countermeasures. For its part, the ECB has warned that both rates and reprisals can lower growth and increase inflation.
The European Commission (CE) has decided to postpone Until mid -April The application of the first Counter in Response to American rates For the European import of aluminum and steel, to give negotiation with Washington more margin to achieve a solution.
The committee had announced a response to duty Of the US in twice, with measures that would enter into force on 1 April and others, in the middle of that month.
“The change represents a slight adjustment of the calendar and does not reduce the impact of our reaction, in particular because the EU continues to prepare for reprisals of a maximum of 26 billion euros,” the community spokesperson explained Olof Gill In a media communication.
“In the meantime, the EU is still willing to establish a constructive dialogue with the United States to find a solution that occurs unnecessary damage to both economies,” he concluded.
ECB: “Rates can lower growth and increase inflation”
For her part, the president of the European Central Bank (ECB), Christine LagardeHe has warned that the imposition of rates for European import by the United States and the retaliation adopted by the EU can reduce five tenths and can also increase inflation for half a point.
ECB estimates suggest that an American rate of 25 % would reduce the growth of the euro area for European import, around 0.3 percentage points in the first year and if the EU responds by increasing its rates at the US input.
In an appearance with the Eurocamara Economic Affairs CommissionLagarde has explained that they believe that the majority of the impact on economic growth would concentrate on the first year after the increase in rates and subsequently fall, so that a continuous negative effect on the production level is lagging behind.
In this scenario, the inflation forecast would also be “considerably more uncertain” and the ECB calculates that the EU reprisals and a weakest euro change speed in the short term – the lowest demand for the lowest demand for European products in the US.
In any case, Lagarde has trusted that the EU and the United States are “making serious attempts to limit the negative consequences of rates and hopefully to avoid the US economy.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
