Students across Europe are becoming restless as they are not assured of a better life despite hard work and long studies. Young people are taking to the streets of several countries including France, Italy, Portugal, and Germany to protest against economic uncertainty, skyrocketing housing costs, cuts in education budgets, and the employment crisis.
Which has taken a violent turn in many cases. This impasse in Europe has worried exporters. After the Middle East crisis, these protests in Europe have renewed concerns about violence. There is a fear of a decrease in export orders.
The reason for the instability in Europe is that inflation is rising, and inflation is falling. So if purchasing power decreases, ultimately the export of the product that goes to Europe will decrease.
If sales decrease, ultimately export orders will decrease. In fact, one after another, pressure is coming and going and it has to be compensated in various ways. But in various ways, the affected people are suffering.
However, these protests in Europe will not last long. If the violence increases, the government will call early elections. That will break the deadlock. If the developed countries cannot control these movements, they will hold immediate elections or they will resign so that this movement does not become a long-term movement. They have that sense. So from that point of view, these movements do not seem to me to be a long-term uncertainty.
As a result, it has no long-term impact. In the short term, it is putting some kind of pressure on the market. Our buyers may also want to take some time to take delivery of the product at the moment or if they want to send it, they are also saying to take a few more days to send it. Such things will happen. But in the long term, the big market pressure is at least the political unrest that is currently there. Due to that, there is less risk of any long-term impact.
The bigger concern than long-term protests is the free trade agreement FTA. India and Vietnam will get preferential treatment by signing an FTA with the European Union. That is why exporters and economists have emphasized on signing an FTA with the EU.
The Ministry of Commerce has already started working and has held meetings with our stakeholders on this and we hope that the Ministry of Commerce will move forward quickly with the FTA. Because after the LDC graduation, we will face a huge setback. In that case, if we can complete the FTA before then, we will be saved there to some extent.
Posted Using INLEO
