Italian - German Trade Embargo

​How will the Embargo affect the economy and what what consequences can already be seen?

As some of you may already know, Italy started a Trade Embargo against germany on 13. September. 

Although this article is written the next day, there can already be seen severve consequences, especially on the german side.

The chances are high that it will "only" last around 1,5-2 weeks, but the damage to both, german factory owners in italy and the italian economy will be quite severve. 

While the italian economy seemed to boom in the last days and weeks, its currency lost nearly 10% of its worth in just a day, making it worth less than the german one again.

In middle to long term the consumers in italy will also be affected by less jobs and a higher inflation rate. For instance the bread prices dropped by 20% in just one day. This will ultimately end in lower wages to sustain these prices and therefore further inflation.

Thank you for reading the first article of "Europe's Economy", written by Roemer_Fan.