The UK’s National Health Service (NHS) faces the longest doctor’s strike in its history as junior doctors in England demand a 35% pay rise, arguing that the rise in wages is needed due to inflation.
Fewer people think that inflation and the war are the biggest challenges facing the EU, while considerably more pointed to migration than six months ago, according to the Commission’s latest EU-wide survey.
If neither wages nor energy prices can explain why the ECB is right in being concerned about persistent inflation, then what can explain it? There is a candidate that nobody wants to talk about: taxes.
According to the data and predictions of economists, the worst of the inflation spike may have passed but interest rates will still go up in the coming months and banks will be hawkish, imposing the tightest requirements for lending since 2011.
While the stars are lining up for another fiscal crisis in Europe, the ECB’s chief economist fails to even mention the threat. Is the ECB ignorant on what is coming down the pike?
