Thursday, May 21Thursday, May 21The European Commission has significantly downgraded its 2026 growth forecast for the eurozone, citing the economic fallout from the Iran war and the Strait of Hormuz crisis as primary drivers. The latest Spring Economic Forecast projects eurozone GDP growth at just 1.1% in 2026, a 0.3 percentage point reduction from earlier estimates . This marks a sharp slowdown, with the conflict in the Middle East pushing energy prices higher and exacerbating inflationary pressures across the bloc.
The war has triggered a severe energy price shock, particularly affecting energy-dependent economies like Germany, where growth expectations have been halved due to the conflict . Business activity in the eurozone contracted in May at its fastest pace in over two and a half years, raising concerns about a potential recession . The downturn is attributed to rising energy costs, which have intensified inflationary pressures, with EU inflation now projected to reach 3.1% in 2026—a full percentage point higher than previously forecast .
Individual member states are experiencing varying impacts. Greece’s growth forecast for 2026 has been revised downward to 1.8% (from 2.2%), with inflation expected to rise due to the regional energy crisis . Austria is among the worst-performing economies, with growth projections trailing only Italy and Romania, reflecting broader pessimism about the EU’s economic outlook . The crisis has also heightened calls for additional fiscal support measures among member states, as the conflict shows no signs of resolution .
EU downgrades growth forecast, fueling stagflation concerns
gdeltproject.org · about 5 hours ago
Economic Watch: EU downgrades growth forecast, fueling stagflation concerns-Xinhua
gdeltproject.org · about 7 hours ago
Iran war squeezes Europes economy as growth slumps, prices surge Europes economy is slowing sharply as the Iran war drives up energy costs, deepening pressure on households and challenging policy makers. Fresh data for May showed euro zone business activity contracted at its fastest pace in more than two years while inflation pressures intensified, raising fears of a prolonged cost-of-living crunch and possible recession.
france24 · about 7 hours ago
Iran-Krieg: EU halbiert Wachstumsprognose für Deutschland Die EU-Kommission zeichnet wegen Trumps Krieg in Nahost ein düsteres Bild der Wirtschaft. Und es könnte noch schlimmer kommen.
sueddeutsche · about 8 hours ago
EU slashes eurozone 2026 growth forecast on Mideast war
news.yahoo.com · about 9 hours ago
Iran conflict cuts EU growth forecast, lifts inflation The war in Iran is dragging down the European economy and sending inflation up. According to the European Commissions spring forecast, growth expectations for this year have been lowered by 0.3 percentage points to 1.1 percent. EU inflation is projected to reach 3.1 percent in 2026, a full percentage point higher than previously forecasted. This […]
cphpost · about 9 hours ago
Greece Faces Growth Slowdown, Inflation Rise — EU Spring Forecast Warns A severe regional energy price shock will slow Greeces economic growth and drive up inflation through 2026, according to the European Commissions Spring Economic Forecasts released on Thursday. The Commission revised Greeces GDP growth downward to 1.8 for 2026 (down from the 2.2 projected last autumn) and forecasts a further slight moderation to 1.6 in […]
greek reporter · about 10 hours ago
Recession warning? Eurozone activity hits lowest level in over two and a half years due to Iran war Business activity across the eurozone slowed sharply in May, hitting its lowest level in more than two and a half years.
euronews · about 10 hours ago
EU cuts 2026 growth forecast as Strait of Hormuz crisis pushes inflation up The EU has downgraded its 2026 economic growth forecast after the Strait of Hormuz crisis sent energy prices sharply higher earlier this year. With no end to the conflict in sight, rising energy costs are fuelling tensions among member states calling for additional fiscal support measures.
euronews · about 10 hours ago
Österreich bei Schlusslichtern Die am Donnerstag in Brüssel veröffentlichte Wirtschaftsprognose der EU-Kommission bietet düstere Aussichten: Für 2026 wird für die EU nur noch mit einem Wirtschaftswachstum von 1,1 Prozent gerechnet. Nur für Italien und Rumänien erwartet die EU-Kommission ein geringeres Wachstum als in Österreich. Die EU ist pessimistischer als das WIFO, dessen Prognose Grundlage des neuen Doppelbudgets ist.
orf.at · about 11 hours ago
Mideast war forces EU to slash eurozone 2026 growth forecast
news.yahoo.com · about 12 hours ago
Lithuania has little to fear from a deeper Hormuz crisis – opinion Alarm bells are ringing across Europe over a possible energy crisis triggered by Iran war. Despite risks to its economy, Lithuania is better positioned than most European countries to weather global supply disruptions, and better prepared than at any point since 1990.
lrt · 15 days ago
ECB warns Iran war energy shock could force rate adjustment ECB Executive Board member Piero Cipollone warned the eurozone may need to adjust interest rates as the Iran war energy shock pushes inflation to 3 and oil supply losses outstrip the 1973, 1979 and 2022 crises combined.
intellinews · 15 days ago
Switzerlands security situation has deteriorated significantly The security situation in Switzerland and Europe has deteriorated significantly over the past year, the Swiss government noted in a report on Wednesday. Expectations that Switzerland will make a greater contribution to the security of the continent are rising. Switzerland is directly affected by Russias hybrid war. The war in the Middle East has many consequences. + Get the most important news from Switzerland in your inbox Geopolitical developments are having an impact on Switzerlands internal security. The governments report indicates that the terrorist threat continues to be dominated by the jihadist movement. Violent extremism, on both the left and the right, is still active. The threat of espionage against Switzerland is very high. Critical infrastructures are under threat from physical and cyber attacks. Adapted from French by AI/ac How we work We select the most relevant news for an international audience and use automatic translation tools to translate them into English.
swissinfo · 15 days ago
Swiss luxury property prices continue to rise Luxury properties became more expensive in Switzerland last year, although the trend is slowing down. According to the Swiss bank UBS, the prices are likely to plateau soon. According to the UBS Luxury Property Focus 2026 report published on Thursday, prices for luxury properties have risen by 3 on average. However, growth was lower than in the market as a whole. + Get the most important news from Switzerland in your inbox Properties in mountain regions remained particularly sought-after. Luxury properties there increased in price by an average of around 6 last year. The main drivers were wealthy buyers from abroad. St. Moritz remained the most expensive luxury property location in Switzerland with average prices CHF52,000/m2. It was followed by Gstaad and Verbier, at around CHF45,000/m2. Outside the mountain regions, Cologny on Lake Geneva was the most expensive with an average of CHF43,000/m2. On Lake Zurich, Küsnacht leads with an average of CHF37,000/m2. According to UBS, a ...
swissinfo · 15 days ago
Europes electrification race: Five ways the EU can avoid the next energy crisis The EU is right to raise its ambitions on the electrification rate—but the target is highly stretching. Only a more aggressive approach will suffice.
european council · 15 days ago
EU countries need more targeted measures to tackle soaring energy prices, says IMFs Helge Berger
gdeltproject.org · 15 days ago
Food waste still too high in Switzerland, says government Food waste in Switzerland remains too high, the government said on Wednesday, drawing mixed conclusions four years after launching an action plan to halve food waste by 2030. While progress has been made in retail and catering, households continue to lag behind. + Get the most important news from Switzerland in your inbox According to an interim report, food losses fell by only around 5 between 2017 and 2024, far short of the 25 reduction targeted for 2025. The action plan, introduced in 2022, has shown results in retail, where food waste has been cut by about 20. Losses have also clearly decreased in the catering sector, although these figures are based only on companies and organisations that actively measure their waste. To date, 37 participants are involved in the voluntary scheme. Households key to progress The report identifies households as the main challenge. They account for nearly 28 of total food losses and contribute significantly to the environmental footprint of ...
swissinfo · 15 days ago
Press release - MEPs back fairer and clearer rules on social benefits for EU mobile workers The updated rules seek to ensure access to social security for EU workers who live or work in another EU country, while distributing obligations fairly among member states.Committee on Employment and Social Affairs Source : © European Union, 2026 - EP
european parlament · 15 days ago
EU cyber plan barring Chinese suppliers will cost US$430 billion: report The European Unions push to bar Chinese suppliers from its critical infrastructure under a proposed new Cybersecurity Act would cost the bloc a jaw-dropping €367.8 billion (US$431.4 billion) over the next five years, a new study has warned. The laws vast price tag comes from the need to rip out and replace huge amounts of Chinese hardware – a task that alone could cost €146.2 billion – with other losses stemming from resource reallocation, service disruptions, employment adjustments and legal...
south china morning post · 16 days ago
149 678 multinational enterprise groups in EU and EFTA In 2024, 149 678 multinational enterprise (MNE) groups were operating in the EU and the European Free Trade Association (EFTA) countries. Of these MNE groups, 96 201 (64.3 of the total) were controlled by an EU country and 14 098 (9.4) were controlled by an EFTA country. Among the MNE groups c...
eurostat · 16 days ago
ECB Tracker Points to Slower Wage Growth in 2026 Eurozone wage growth is set to slow this year, despite the rise in energy prices that has accompanied the conflict in the Middle East, according to the European Central Bank.
wsj · 16 days ago
The #EU is imposing #sanctions against #China and freezing purchases of key components for solar energy from November 1, citing security concerns. This is a new blow to the European energy sector. Allegedly
mastodon bot · 16 days ago