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. Dombrovskis explained that even if disruptions to energy supplies prove relatively short-lived, the impact on the European economy would still be significant....