(Bloomberg) — European countries need to do more to protect consumers and businesses to prevent a rise in populism, according to France’s Minister for European Affairs Laurence Boone.
(Bloomberg) — European countries need to do more to protect consumers and businesses to prevent a rise in populism, according to France’s Minister for European Affairs Laurence Boone.
The former chief economist at the Organization for Economic Cooperation and Development accused Russian President Vladimir Putin of weaponizing energy prices following his invasion of Ukraine, for which Europe still needs to continue providing protective measures.
“I think we have done well so far but we must be very vigilant precisely to avoid this rise in populism and to preserve the resilience of people,” she added, while warning that uncertainties in Ukraine and over the economic situation in China will continue.
“We have to be aware of this, which is why it’s super important to make sure that we can provide shields to consumers and firms,” Boone told Francine Lacqua in an interview with Bloomberg Television on the sidelines of a conference in Cernobbio, Italy. “To firms, to maintain competitiveness and good jobs, for consumers so that their purchasing power remains as good as possible.”
Euro-area inflation stopped slowing in August, presenting European Central Bank officials with a quandary as they weigh whether pressures are too persistent to risk a pause in interest-rate hiking.
While inflation has slowed throughout most EU countries, it is still causing popular discontent, putting pressure on governments. The French government on Wednesday announced that supermarkets and consumer goods groups committed to freeze or reduce prices on some 5,000 food items, from around 1,500 currently.
French Finance Minister Bruno Le Maire criticized multinational food companies Nestle SA, PepsiCo Inc. and Unilever Plc for not doing more to cut food price.
Asked about stagflation, Boone said she’s cautiously optimistic as measures taken in the short term in most countries in Europe have helped slow inflation.
Yet, the French minister urged the EU to take reforms to preserve budgets. “We can’t keep with the pre-Covid, pre-war rules, we have to have rules that allow for growth, investment and sustainable finance.”
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