European Commissioner Dombrovskis: The Iranian crisis is fraught with a stagflation shock for the EU. Dombrovskis complained that Washington did not inform Brussels about what it intends to do and did not consult with European leaders before attacking Iran.
The economy of the European Union (EU) risks experiencing a stagflation shock in the event of an escalation of the Middle Eastern conflict, said European Commissioner Valdis Dombrovskis. He was quoted by Euronews.
According to him, the economic consequences of the Iranian crisis will depend on how long the conflict lasts and how widely it spreads. If it drags on and causes further disruptions in oil and gas supplies, it could trigger a stagflation shock in the European economy, as prices rise sharply while growth slows.
In addition, the Commissioner responded to a question about U.S. plans regarding Iran. Dombrovskis admitted that Washington did not inform Brussels about what it intends to do and did not consult with European leaders before attacking Iran.
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