Bank of Italy Governor Panetta Warns Gulf Conflict Could Stagnate Italian Economy, Urges EU Reform and Youth Investment
Bank of Italy Governor Fabio Panetta delivered a stark warning that the conflict in the Persian Gulf has dramatically weakened economic prospects, potentially pushing Italy into stagnation or contraction, while calling for urgent European reforms and investment in youth.
ECB officials signal June rate hike as Iran war drives inflation toward 4% and economic outlook darkens
Top European Central Bank officials Isabel Schnabel and Philip Lane have delivered their clearest warnings yet that interest rates will rise in June, as the Iran war pushes eurozone inflation toward 4% and the macroeconomic outlook deteriorates.
German inflation unexpectedly drops to 2.6% in May as fuel discount takes effect, but ECB rate hike looms
Germany's annual inflation rate fell to 2.6% in May from 2.9% in April, defying economist expectations, as a temporary fuel tax cut and lower crude oil prices eased pressure on consumers.
Spain's inflation holds at 3.2% in May as government energy tax breaks near expiration amid Iran war shock
Spain's annual inflation rate remained at 3.2% in May, defying global energy turmoil from the Iran conflict, but key electricity and gas tax rebates are set to expire on June 1, threatening a summer price spike.
German unemployment dips below three million in May but spring recovery stalls
The number of unemployed people in Germany fell by 58,000 to 2.95 million in May, slipping back below the three-million mark for the first time since December, yet the Federal Employment Agency warns a genuine turnaround remains out of sight.
German Economic Advisers Slash 2026 Growth Outlook to 0.5%, Warn Social Charges Could Hit 50% of Wages
The Council of Economic Experts cut its GDP forecast to 0.5% for 2026, blaming the Iran War’s surge in energy prices, and warned that social security contributions could reach 50% of income by 2040 without deep reforms.