There is a large, hopeful spot amid Europe’s economic troubles – the labour market. Despite the high inflation rates and energy prices hurting businesses and households all over the continent, the unemployment rate is currently at record lows. According to EU labour market data, many companies expect to keep hiring new workers because the current crisis is thought of as short-lived.
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On the other side of the world, unrest is rising. In Brazil, investors are questioning President Lula’s approach to its state-controlled companies, like the oil company Petrobras. Fears for more interventionist economic policies boost volatility in Brazil, which is already prone to unrest, as seen with the storming of its main political buildings by “Bolsonaristas”. Whether these disruptions will impact the world economy has yet to be determined.
Claudio Descalzi, the CEO of ENI, one of the world’s largest oil companies, made an interesting suggestion. As a solution to the current energy crisis in Europe, he pushes for closer cooperation with Africa. By closely collaborating with energy suppliers in Africa, rather than simply profiting from its weaker economy, Europe could mitigate the effects of cutting ties with Russia as its primary energy supplier.