reply Inflation in European Union countries is rising at a record pace

Global supply chain bottlenecks and geopolitical conflicts drove the overall inflation rate in the European Union to 6.2% in February, while the euro zone's rose to 5.9%, both hitting record highs, according to data released by eurostat. Inflation in the euro zone is expected to remain at 5.1% in 2022, up from the 3.2% forecast three months ago, according to ECB data. As a result, the ECB cut its forecast for eurozone growth in 2022 to 3.7% from 4.2% previously.The conflict in Ukraine is having a serious impact on the eurozone economy, according to a report by McKinsey, a global management consulting firm. If the conflict persists and the policy response is poor, eurozone inflation could exceed 7 per cent this year, putting the economy at risk of slipping back into recession. Many economists believe that the COMBINATION of COVID-19 and regional conflicts will further increase economic uncertainty in the EU, and inflation will seriously affect the income of enterprises and households, leading to an increased risk of stagflation.Christine Lagarde, president of the European Central Bank, said recently that the EU economy is facing multiple challenges, and the international energy and commodity prices continue to rise, the EU will have to face the pressure of rising inflation and slowing economic growth in the future. The ECB will respond by all means necessary. The European Central Bank recently held a policy meeting and decided to slash its asset purchase programme to ease inflationary pressures.At a meeting of eurozone finance ministers, countries agreed to delay the timetable for tightening fiscal policy until 2023. Supply-chain bottlenecks, soaring energy prices and high inflation will persist for longer than previously expected, the statement said. Governments should keep their policies sensitive and flexible, and increase fiscal support for the economy at an appropriate time to counter downward economic risks.Governments across Europe have begun taking emergency measures to ease the impact of inflation on their economies and people's lives. The French government recently unveiled a €6.8bn economic recovery package, focusing on extra financial support for energy-intensive companies and boosting the proportion of government loans guaranteed to companies to restore confidence. The German government will further increase subsidies for People's Daily heating and other aspects. The Belgian and Dutch governments announced cuts in value-added tax on energy and temporary subsidies for poor households, including gas and electricity supplies. The Italian government has put together a financial rescue package worth 5.5 billion euros to help people tide over the crisis.Some EU member states are concerned that higher inflation will undermine the effectiveness of the bloc's previous economic recovery plans because the actual level of financial support received by member states will fall. Raymond Torres, a European economist, said high inflation would significantly reduce the multiplier effect of the EU's recovery fund on member states' economic growth, with the stimulus effect of the money partially offset by rising prices. The EU should adjust its economic recovery plan and fund allocation plan in a timely manner in light of the changing situation.