It’s historic. On Tuesday, July 12, the euro briefly reached $1, a threshold that had not been crossed since the year it was put into circulation two decades earlier.
The single European currency is weighed down by the fear of energy shortages next winter, due to the risk of cuts in Russian gas supplies for the European Union, but also by the concerns hanging over the Old Continent following the outbreak energy prices (gas, electricity, fuel) since the outbreak of the conflict in Ukraine on 24 February.
Evidenced by Germany’s decision on June 23, which activated level 2, known as “alert”, of its emergency plan on gas supply, which has become a “scarce resource”, like indicated its Minister of Economy and Climate, Robert Habeck. This is the last level before the organization of rationing by the State, planned in phase 3, in order to distribute the volumes between individuals, administration and industry. Berlin, still dependent on Russia for 35% of its gas imports, has seen its deliveries decline since the introduction of Western sanctions against Moscow.
See also: For lack of Russian gas, Germany, Austria and the Netherlands are relaunching coal-fired power plants
The European Union is also suffering from the rise in the price of raw materials such as cereals, Ukraine and Russia being two major world exporters. Consequently, as the era is marked by a lot of uncertainties on the European continent, the dollar benefits from its status as a safe haven for investors who favor it, judging the currency safer. Also, the greenback has gained nearly 14% since the start of the year.
On social networks, faced with this historic fact, Internet users wondered about the consequences of the war in Ukraine for Europe. Who does it benefit? Journalist and host Christine Kelly was quick to suggest that Americans were winners and Europeans were losers.
The euro falls against the dollar.
Who benefits from the war in Ukraine? pic.twitter.com/oSqBsXLp7y— Christine KELLY (@christine_kelly) July 12, 2022
Unsurprisingly, the sovereigntists did not fail to recall the need to leave the euro, following the example of Florian Philippotpresident of the Patriots, or the economist Philippe Murer: “The interest of the euro is zero”, he hammered.
A euro is worth a dollar. The euro has lost nearly 20% of its value in one year. The interest in the euro is nil.
Let’s find our national currency to launch major energy projects in France ➡️Richesses and jobs pic.twitter.com/DaXNeuxwEM— Philippe Murer ???????? (@PhilippeMurer) July 12, 2022