Mideast war forces EU to slash eurozone 2026 growth forecast
The commission said the eurozone will grow 0.9% in 2026 and inflation will reach 3.0% as energy costs rise.
- On Thursday, the European Commission cut its 2026 growth forecast for the European Union to 1.1% and the eurozone to 0.9%, citing sharply higher energy prices from the Middle East conflict.
- After Iran retaliated to US-Israeli strikes, the conflict closed the Strait of Hormuz, triggering a major energy shock and marking the second such crisis in less than five years following Ukraine.
- Inflation is now expected to reach 3.0% for 2026, up from 1.9%, exceeding the European Central Bank's 2% target while consumer confidence fell to a 40-month low amid rising costs.
- Italian Prime Minister Giorgia Meloni recently urged the European Commission to relax fiscal rules for energy, arguing that energy security requires the same budgetary flexibility as defense spending.
- Brussels warned that Europe could face a worse scenario if energy prices continue rising through the year, potentially causing inflation to persist and stalling economic recovery into 2027.
58 Articles
58 Articles
EU growth: Spring of discontent
The EU’s Spring Economic Forecast shows a slowdown in growth as the energy shock drives up inflation and puts new strain on finances. It has not, to say the least, been the most promising of weeks for Europe’s economy. On May 21, the European Commission released its Spring Economic Forecast which, somewhat predictably, shows a slowdown in growth as the energy shock caused by the US war on Iran drives up inflation. Before the war began at the end…
EU panel: Energy shock from Iran war will hamper Europe’s growth, boost inflation
FRANKFURT, Germany — The European Union’s executive commission cut its growth outlook and predicted higher inflation due to sharply higher energy prices from the war in Iran, but it said the economy will avoid an outright recession. Read more...
EU downgrades growth forecasts as the Iran war drives energy costs higher.
Eurozone Cuts Growth Forecast as Iran Conflict Fuels Inflation, Says EU - The Thinking Conservative News
The European Union has said there will be a slowdown in growth as a result of the “energy shock” triggered by the Iran conflict, according to the latest forecast. The post Eurozone Cuts Growth Forecast as Iran Conflict Fuels Inflation, Says EU appeared first on The Thinking Conservative News.
Eurozone Cuts Growth Forecast as Iran Conflict Fuels Inflation, Says EU
The European Union has said there will be a slowdown in growth as a result of the “energy shock” triggered by the Iran conflict, according to the latest forecast. In its May 21 executive summary to its spring forecast, the European Commission said that before the start of the Iran war, the world’s economy was gaining momentum, with the EU’s economy “likewise strengthening while inflationary pressures were further abating.” However, it said that …
EU forecasts weaker growth, rising inflation
The European Union (EU) economy is expected to grow at a slower pace with higher inflation, and the positive trend in labor markets is set to halt amid the energy shock triggered by the Middle East conflict, the European Commission's spring forecast said on Thursday.
Coverage Details
Bias Distribution
- 37% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
