Yet the article does not explain how a "gas crisis" leads to a weaker currency.
One thing I find weird (a touchy point?) is that the UK left. Yes, that was a few years ago, but my point is historical EU / Euro pricing is now diminished overall, in its up/down cycle.
COVID threw this asunder, so we did not see true fiscal results from UK leaving. And the UK left over a few years, making the departure less dramatic.
Comparing the EU (18T) to the UK (3.4T) shows some impact here, around 20%. If the UK was still in the EU, I'd say the Euro wouldn't have dropped below parity.
Parity is an "OMG!" marker, and can cause cascading changes in perception to the strength of fiscal objects.
The UK wasn't in the Euro, and isn't the answer to Europe's issues with gas prices or interest rates. Sterling has fallen similarly against the dollar for the same reasons (and had a larger trend fall from a higher peak in the longer term). Brexit doesn't help anybody with the current situation, but it doesn't have much to do with it.
One thing I find weird (a touchy point?) is that the UK left. Yes, that was a few years ago, but my point is historical EU / Euro pricing is now diminished overall, in its up/down cycle.
COVID threw this asunder, so we did not see true fiscal results from UK leaving. And the UK left over a few years, making the departure less dramatic.
The UK comes in right after Germany:
https://www.investopedia.com/insights/worlds-top-economies/
and:
https://en.wikipedia.org/wiki/Economy_of_the_European_Union
Comparing the EU (18T) to the UK (3.4T) shows some impact here, around 20%. If the UK was still in the EU, I'd say the Euro wouldn't have dropped below parity.
Parity is an "OMG!" marker, and can cause cascading changes in perception to the strength of fiscal objects.