European politicians warn the highest “worst scenarios”

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The European Central Bank faces an economic environment “some of the worst scenarios that we have identified,” according to Jose Luis Eskiva, the governor of the Bank of Spain and a member of the Board of Directors of the European Central Bank.

Speaking to The Financial Times before the bank’s price decision next week, Escripá warned that the customs tariff imposed by Donald Trump was “a great negative shock to economic activity.”

He suggested that American policies can raise a question about the status of the dollar as a reserve currency and a haven.

Eskiva said that the exact repercussions of overwhelming measures, including the so -called mutual definitions that came into effect on Wednesday, “are still not confirmed,” adding that monetary policy makers “are closely watching them.”

The best central banker in Spain-who took responsibility last September after he worked as a minister in the government led by socialism after a previous profession in the economy-that the influence on inflation in the eurozone “will depend, among other factors, on the European response in terms of commercial revenge, and perhaps, in terms of the most expansive fiscal policy.”

Germany last month failed its strict financial bases to allow increased borrowing to finance defense spending and investment in infrastructure, and the European Union creates more space for debt -funded military spending.

Investors and analysts are now, stressing that the European Central Bank will reduce interest rates for the seventh time since June to 2.25 percent on April 17, after they expected a possible stop before Trump’s long -term ads on April 2. Escrivá refused to comment on his point of view before the meeting.

The head of the Bundesbank Joachim Nagel, the last sane voice, said on Tuesday that the European Central Bank “will create” it “to enhance the” flexibility “of the currency area in the current financial turmoil, noting that inflation was on the right path to fulfill the goal of the central bank 2 percent.

Escripnge suggested that international investors may re -evaluate the role of the US dollar. He said that the multilateral agreements and rules that strengthened commercial flows prompted the “central role” of the “American economy, US dollar and US financial markets” in recent decades.

He said: “The agents and economic authorities everywhere are now re -evaluating what the latest policies of the United States mean for many of these elements, and there are reasons for doubt that some of them will continue to play such a relevant global role in the future.”

Escripnge suggested that the euro can appear as a more attractive alternative. “We can offer a very large economic zone and a strong currency, which benefits from stability and the ability to predict from sound economic policies and the rule of law.”

On Wednesday, Escrivá told Spanish television that the central bank would review its growth expectations for the Spanish economy this year, which is currently 2.7 percent.

The best central banker in Spain said that the dramatic declines in the global stock markets since early April have been a “test of the flexibility of the financial system worldwide”, but added that the markets “time” were operating in a “organized” way, which confirms “the impression that the system is now more flexible than it was.”

Additional reports by Barney Jobson in Madrid