European Central Bank official Stournaras warns that if the war continues, it will have a significant impact.

MaticHoleFiller · 2026-03-21T10:43:09+00:00

Greek Central Bank Governor Stournaras warned that Middle East conflicts could have serious impacts on global and eurozone economies, emphasizing that prolonged warfare poses risks of supply shocks and inflation increases. The ECB maintained interest rates unchanged, but the possibility of future rate hikes remains. He called for strengthened fiscal governance and common debt issuance.

MaticHoleFiller

2026-03-21 10:43:09

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European Central Bank Governing Council member Yannis Stournaras warned that if the Middle East conflict continues, it could have significant economic consequences.

“This geopolitical conflict poses additional negative supply shocks to the global and eurozone economies. If the conflict persists or spreads to more countries, it could have substantial macroeconomic impacts,” the Greek central bank governor said at an event in Frankfurt.

Just a few hours ago, the European Central Bank announced it would keep interest rates unchanged, while warning that rising energy costs could pose inflation risks. Sources previously indicated that if the spillover effects of the Iran conflict cause inflation to exceed targets significantly, officials do not rule out a rate hike in April.

“During times of conflict, budget constraints, energy disruptions, and broader uncertainties often arise — making prudent fiscal management and coordinated crisis response especially important,” Stournaras stated.

He also called on European governments to expand joint borrowing to achieve specific objectives.

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