Eurozone weekly economic briefing | Potential policy shakers this week
The week was full of events that could potentially become policy shakers. While the PMIs showed economic growth keeps cooling, energy prices continued to soar, prompting governments to find further offsetting measures to protect purchasing power.
What you will learn:
- On the monetary policy front, the resignation of Jens Wiedmann from the Bundesbank and, by extension the ECB council, surprised analysts. While this is not an immediate game-changer, it could reshape the balance of power in the ECB council.
- Meanwhile in Germany, it seems that an SPD/Greens/FDP coalition government could be formed sooner than expected.
- The EU vowed to adopt punishing measures against Poland after the
latter rejected the primacy of EU law over national legislation.
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