off-the-wire

Stagflation in EU is worst scenario, we are not yet there -Eurogroup chair

Kitco Media
By Reuters
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Reuters
Stagflation in EU is worst scenario, we are not yet there -Eurogroup chair teaser image

WASHINGTON, April 14 (Reuters) - Stagflation in Europe as a result of ​the U.S.-Israeli war on ‌Iran is the worst case scenario and we are not ​yet there, the chairman ​of euro zone finance ministers ⁠Kyriakos Pierrakakis said on Tuesday.

The ​European Commission has warned ​that the surge in oil, gas and fertiliser prices as a result ​of the closure of ​the Strait of Hormuz posed a ‌risk ⁠of stagflation in Europe.

Speaking at the Semafor conference in Washington Pierrakakis said the energy ​price ​surge ⁠would reduce economic growth and increase inflation but ​its exact impact ​would ⁠depend on how long the Strtit of Hormuz would remain ⁠closed ​for trade.

"We're ​not yet there," he said on the ​stagflation scenario.

Reporting by Jan Strupczewski

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