On Thursday, the head of the German Bundesbank, Joachim Nagel, expressed his concern about the rise of far-right parties in Europe, warning that some of the ideas put forward by these parties may have negative economic repercussions, especially on Germany’s attractiveness to foreign investments.
Nagel said, during a European Central Bank press conference in Berlin, that the rise of the far right raises questions about the future of German society and the values it shares, adding that some of the proposals are “harming themselves economically.”
Nagel's statements came after the Alternative for Germany party advanced to first place in the elections in the state of Saxony-Anhalt in the east of the country, on the basis of a program that calls for, among other things, Germany's exit from the European Union, tightening immigration restrictions, and restoring relations with Moscow.
Nagel said that the party's rise sends a worrying message to foreign investors, wondering whether this would help attract investments to Germany, before answering: "Absolutely not." He added that investors may become more hesitant to do business in the country.
The Alternative for Germany describes the single European currency as a failed system, and calls for Germany's exit from the eurozone.
On the other hand, European Central Bank President Christine Lagarde confirmed that the euro currently enjoys high levels of support in Europe, especially in the euro zone. “The euro has never been more popular than it is in Europe and the eurozone in particular,” Lagarde said on Thursday, after the European Central Bank raised interest rates for the second time this year.
According to Eurobarometer data in the spring, 82 percent of eurozone participants support the single currency, while support stands at 74 percent at the European Union level, the highest percentage recorded for the union since the launch of the euro in 2002.
Nagel and Lagarde's statements come at a time when Europe faces simultaneous economic and political challenges, including weak growth and growing dissatisfaction with traditional parties, in addition to mounting political pressures related to migration and relations with Russia.
Fears have increased in Egypt about facing a new high-cost crisis, with expectations of an increase in fuel prices, in light of the turmoil in global oil markets, and the government’s decision to resume the work of the “Automatic Pricing Committee” for petroleum products, starting last July.
The Finish Solutions Foundation, which is concerned with economic research, expected an increase in fuel prices in Egypt during this September, and stressed that “the Egyptian government seeks to achieve the financial goals of the general budget that began last July, which means it will resort to reducing spending on fuel.”
The annual inflation rate in Egyptian cities recorded 14.5 percent last August, compared to 14.9 percent in July, according to data issued Thursday by the Central Agency for Public Mobilization and Statistics.
In the opinion of economic expert Dr. Wael Al-Nahhas, the international organization’s expectations are consistent with the economic indicators that reinforce the Egyptian government’s resort to increasing fuel prices during the current month after the price of a barrel of oil reached $100.
He told Asharq Al-Awsat, “The indicators that suggest an increase in fuel prices in Egypt during the current month will not be the last,” expecting “a next increase in November, as the Egyptian government seeks to permanently lift fuel subsidies.”
The Egyptian government decided to raise fuel prices on March 10 by rates ranging between 14 percent and 30 percent, for gasoline, automobile gas, and domestic and commercial gas cylinders.
Al-Nahhas stressed that “increasing the price of gasoline will lead to a new rise in the prices of most goods and services, due to the increase in the cost of production.”
Mahmoud Al-Asqalani, head of the Citizens Against High Prices Association for Consumer Protection, believes that any new increase in fuel prices in Egypt will lead to a wave of high prices whose effects are difficult to calculate. He told Asharq Al-Awsat that the rise in gasoline prices “will lead to an increase in the prices of all goods and services.”
He explained, "Citizens are trying to bear the high prices, and some may be unable to manage their daily living expenses and food. The government must look for other solutions that do not include approving any new increases."
