The fall of euro depreciation against USD since the beginning of the year by more than 12% will lead to higher prices for imported goods, causing damage to European business. Coupled with high inflation and multiple increases in energy prices, the weak euro is already “tearing apart” the EU economy, Bloomberg says.

“Euro depreciation against USD is hurting corporate profits because of higher dollar-denominated commodity prices,” Kenneth Brooks, head of corporate research at Societe Generale SA, said.

Consumer inflation in the eurozone is already close to 9 percent, which is negatively affecting sales of businesses and companies. Depreciation of the euro below parity with the dollar will further exacerbate the performance of firms, provoking a decline in consumer demand amid rising prices, notes the publication.

“European stocks are trading at a notable 30 percent discount to U.S. stocks, reflecting risks to sectors such as energy and finance,” warned JPMorgan Private Bank global strategist Madison Faller.

Earlier we reported that Israel is preparing to increase gas supplies to Europe.