18 October 2024 – In yesterday’s ECB press conference on the upcoming interest rate cuts in the EU, the ECB also made it clear that tightening tariffs and trade barriers would be detrimental to the interests of the European Union. And positive signals from the United States, Europe and the UK: Economy proves robust.
ECB with a clear statement against tariffs and trade barriers
At yesterday’s press conference of the European Central Bank, Christine Lagarde (President ECB) and Luis de Guindos (Vice-President ECB) clearly emphasised how important free trade is for the economy of the European Union and that any tightening of trade barriers and tariffs must be seen as a disadvantage for the EU.
‘Trade is obviously an important element and as part of the drivers of activity going forward, we obviously have consumption and investment, but we also have trade. Any restriction, any uncertainty, any obstacles to trade matter for an economy like the European economy, which is very open. Trade within itself, of course, but trade also with the rest of the world. Any hardening of the barriers, the tariffs, the additional obstacles to that possibility to trade with the rest of the world is obviously a downside.’
Source: MONETARY POLICY STATEMENT, Press Conference, ECB, 17 October 2024
Further tightening of market protection and tariffs must be prevented
We are delighted that the ECB in particular has so clearly emphasised the dangers of tightening tariffs and other trade policy measures. It would be great if other EU institutions, and especially the German government, would take up this attitude and finally stop calling for one market protection measure after another.
The ECB has much more knowledge and expertise than professional politicians, especially in such matters. And politicians would be well advised to listen to people who know their stuff. At a national level, we believe that the Federal Ministry for Economic Affairs and Climate Protection has a particular duty here, as it is happy to listen to lobbyists without hindrance, but is trying to hide from the increasingly louder small and medium-sized enterprises.
Positive signals from the US, the EU and the UK: Economy proves robust
Current economic data from the USA, the Eurozone and the UK point to a resilient global economy. In the USA, retail sales rose by 0.4 per cent in September – a clear sign of consumers’ unbroken purchasing power. At the same time, the number of initial jobless claims fell significantly. This combination of stable demand and a robust labour market supports the optimistic scenario of a ‘soft landing’, in which the economy cools gently without slipping into a recession.
Eurozone sends positive signals
The Eurozone is also sending positive signals: inflation has fallen to its lowest level since 2021, which gives the European Central Bank the opportunity to flexibly adjust its monetary policy measures. ECB President Christine Lagarde emphasised the progress made in reducing inflation, which is giving the financial markets a further boost.
Great Britain with record number of new jobs
In the UK, declining inflation rates and a record number of newly created jobs show the stability of the economy. With 373,000 new jobs and a falling unemployment rate, the British economy is stronger than it has been for years. Falling inflation is also creating scope for the Bank of England to cut the base rate.
Latest news
- Are half-truths actually lies? We think so, what do you think?
- German climate contracts: All just election gifts?
- Chinese stimulus programme underestimated by the market?
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
