Economy Politics Local 2026-03-03T10:13:53+00:00

Middle East War Threatens European Economy

The ECB's top economist warns of risks of soaring inflation and a production drop in the euro area due to the ongoing conflict and reduced energy supplies from the Middle East.


Middle East War Threatens European Economy

Philip Lane, the chief economist of the European Central Bank, said in an interview with the Financial Times published on Tuesday that a prolonged war in the Middle East and a continuous decline in oil and gas supplies from the region could cause a significant increase in inflation and a sharp drop in production in the euro area. He stated that these factors pose serious risks to the economic bloc.