This is what the euro-dollar parity means for you and the EU economy

Europeans are this week grappling with one thing unthinkable only a few months in the past: the euro sliding in direction of parity with the American greenback.

This implies 1 EUR equals 1 USD.

The final time the euro fell beneath the greenback was November 2002, when the frequent foreign money was nonetheless in its infancy. The euro progressively strengthened and remained above the greenback ever since.

Shoppers, corporations and governments turned used to this monetary establishment, which lasted even by the worst instances of the European debt disaster.

However when Russia launched the invasion of Ukraine, a sudden financial shock turned the norms the other way up.

The euro started shedding worth on 24 February, a pattern that accelerated in June as fears grew the Kremlin would transfer to fully reduce off gasoline provides to the EU in retaliation for Western sanctions.

By mid-July, the 2 currencies have been neck and neck.

How will the euro-dollar parity have an effect on Europeans?

Euronews spoke with Maria Demertzis, interim director at Bruegel, to seek out out extra in regards to the penalties of this momentous financial shift.

“In the meanwhile it hits the parity, it feels some kind of a restrict has been damaged,” mentioned Demertzis. “It has quite a lot of symbolic worth.”

Watch the video above to find what the euro-dollar parity means for you and the EU.