ECB's Lagarde: Middle East energy crisis top threat to Europe's economy

ECB President Lagarde identifies the Middle East conflict-driven energy crisis as the primary threat to the European economy, citing simultaneous inflationary pressure and slower economic activity. This signals a stagflationary risk for the eurozone, potentially complicating ECB policy. The statement is a high-level warning, not a policy change, but underscores the macro impact of regional instability.