Eurozone finance ministers met to discuss rising inflation and the worsening outlook for growth ahead of the Economic and Financial Affairs Council this week.
Peak inflation is a “fact of life” made worse by the war in Ukraine, said Sigrid Kaag, the Dutch finance minister.
“The level of inflation will certainly be with us at a high level next year…and we have to take that into account,” Kaag said.
Some fear that Europe could enter recession as the war in Ukraine raises the prices of energy, food and raw materials.
“What could change the situation we’re in and put us in a more difficult economic situation are supply cuts and real supply shortages,” said European Economy Commissioner Paolo Gentiloni.
The EU has been warning member states for months to prepare for a complete shutdown of energy supplies from Russia. The commission is now working on a contingency plan for all scenarios, including the possibility of a fuel-rationed winter and full-scale war on Europe’s borders.
Finance ministers say they are “fully committed” to “ensuring the conditions” for growth, according to a statement from the eurozone members.
Spanish MP Luis Garicano told Euronews that the European Central Bank’s hands appear to be tied.
“It is afraid of causing a euro crisis, because it is afraid of causing debt problems for some of its members,” Garicano said.
Watch the full video report in the player above.