Amid soaring inflation in the region, a free-falling currency is not exactly ideal but it pretty much underscores the situation that Europe is faced with at the moment. The ECB can be said to be behind the curve when it comes to tightening policy among major central banks and their window is already closing amid a rather dire economic outlook after the post-pandemic recovery.
The whole Russia-Ukraine situation has just poured gas onto the fire and has exacerbated the negative developments in the region, putting more pressure on both lawmakers and policymakers. It sucks for the ECB as they are trapped between a rock and a hard place but one can argue that they've been lucky to avoid such a tragic situation for many years now.
