Europe on the Brink War-Driven Energy Shock Sparks Stagflation Fears
The European Union is facing a growing risk of stagflation as a result of the war in the Middle East and the resulting surge in energy prices, according to European Economy Commissioner Valdis Dombrovskis. Speaking after a meeting of euro area finance ministers, he warned that the economic outlook is becoming increasingly uncertain, with the combination of slowing growth and rising inflation now a realistic scenario.