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  • Prime Minister: EU central banks and governments must fight inflation together | New

Prime Minister: EU central banks and governments must fight inflation together | New

By on June 25, 2022 0

Speaking at a meeting of EU leaders in Brussels on Friday, Kallas said: “Containing inflation is a major challenge for the whole of Europe. The recovery from the COVID pandemic has led to a sharp increase in demand and the Russian war against Ukraine has led to higher energy prices.. After years of steady income growth, we are facing a temporary decline in living standards, which inevitably creates difficulties for many people.

Central banks and governments must jointly respond to this perfect storm,” Kallas added, according to a government office press release.

Inflation cannot be mitigated by large increases in spending, she added. “We have to help those who are in difficulty. But the general increase in benefits and the increase in public spending only turn inflation into a cycle. If our objective is to fight inflation and prevent people fall below the poverty line, the budget deficit must be contained, not increased.”

Europe faces major economic challenges that require reform, especially in the energy and digital economy sectors, Kallas continued.

“The worry-free time for financial viability is over, we are returning to a time when balance matters,” she added.

The challenges facing Ukraine and Moldova, which were recognized as official EU candidate status at the summit, as well as that of Georgia, were also on the table, as was the pursuit the integration of the Western Balkan region into alignment with the EU, and the future of Europe more broadly.

Balancing the budget is a central policy of Kallas’ party Reform, while the question of how to combat inflation and its effects, particularly in the energy sector, has been a major topic for Kallas on the front line. interior.

A recent row over a bill that would increase spending on child benefits was, at least on the surface, at the heart of a government split that resulted in Kallas sacking junior coalition partner the Center Party early on. of this month. . Reform is currently in talks with Isamaa and the SDE to form a coalition, although no agreement has yet been reached.

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