Thursday, June 18, 2015

European economists estimated the damage to the EU sanctions of € 100 billion – RBC

The protest of Polish farmers against retaliatory sanctions in Warsaw. Archive photos.

Photo: AP

According to the German newspaper Die Welt, citing data from the Austrian Institute of Economic Research (WIFO), the EU risk lose because of anti-Russian sanctions and Moscow’s response to about 100 billion euros and more than 2 million jobs.

The Austrian experts say that before such a scenario is considered pessimistic case scenario, but now it may well be real.

The greatest losses from the sanctions, according to experts, will carry Germany, which is due to the limitations and the response of Moscow struck out 1 percentage point of its economic performance. The cumulative loss of Berlin economists have estimated 27 billion euros.

Among the other countries severely affected by the policy in relation to Russia, called Poland, Italy, Spain, France and Estonia.

The publication notes that the findings of WIFO experts are fundamentally different from those statistical calculations reached by the European Commission. Brussels officials claim that the damage from the sanctions and the response Moscow is insignificant and is easily controlled. A possible reason for this is the fact that the experts of the European Commission in their assessments are based on short-term performance, while WIFO compares the situation in the preceding months and simulates it in the future.

In Berlin believe that the WIFO too pessimistic about the situation, however, suggest that in the future the situation could seriously deteriorate really. According to Eckhard Cordes responsible for the eastern direction in the German foreign economic policy, the problem is, including the fact that during the sanctions place of German companies can take Chinese companies. “This is a serious concern,” – said Cordes.

In this edition emphasizes that the EU does not publish the actual casualty figures from the anti-Russian sanctions. This is probably due to the reluctance to provide this information Moscow, which can use them as an argument at a pressure on certain countries.
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