ECB Official Stournaras: Middle East Conflict Raises Euro Zone Growth Concerns

Greek ECB Governing Council member Yannis Stournaras, in an interview with Phileleftheros, described the Middle East conflict as a "real and legitimate" threat that could trigger a slowdown in the euro area by disrupting supply chains. Stournaras warned that regional supply disruptions could intensify price pressures, thereby slowing economic growth. He highlighted that volatility in energy and raw‑material prices is driving up production costs and curbing consumer spending. Within the ECB’s monetary policy framework, he emphasized the need to maintain a balance that aligns with the inflation target. Stournaras stated that the central bank must take measures to guard against a potential recession, but these actions should not conflict with sustainable growth objectives. The interview underscored that the long‑term effects of the Middle East conflict and the uncertainty surrounding supply chains could threaten the macro‑economic stability of the euro area. Stournaras called for close monitoring of these risks and the flexible application of policy tools when necessary. This is not investment advice.