The EU will still be hit by a “stagflationary shock” of low growth and rising inflation despite the US and Iran agreeing a two-week ceasefire, the bloc’s top economic official has warned.
EU economy commissioner Valdis Dombrovskis said the European Commission is preparing to cut its growth forecast for this year as the fallout from the Middle East conflict remains highly uncertain.
“It’s certainly a welcome step towards de-escalation and is also expected to bring relief as regards the energy crisis,” Dombrovskis said of the ceasefire in an interview with the FT.
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