But as the UK situation worries the markets, analysts are pointing to the EU’s largest economy as their biggest concern.
EuroIntelligence Director Wolfgang Munchau wrote: “The financial crisis is not going to be limited to the UK.
“We argue that the euro area is where the house is most likely to burn.”
Sam Miley, Senior Economist at the Centre for Economics and Business Research said: “Inflation in the Eurozone reached a new record high of 10.0 percent in September. This was once more driven by energy prices, which are set to bring further pressures given the indefinite closure of the Nord Stream 1 pipeline, a major source of gas supply between Russia and the Eurozone.
“The mounting inflationary environment poses a significant risk to Eurozone growth. Indeed, Cebr expects the currency bloc to enter a recession in the latter half of this year. Meanwhile, the lingering effects of demand- and supply-side constraints are set to force a further annual growth slowdown into 2023.”
The Cebr published a damning chart highlighting the scale of the economic damage.
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