ESM sees euro zone recession if US sell-off, new Middle East war hit at once

The European Stability Mechanism flagged Middle East conflict and a U.S. sell-off as the two biggest risks to the euro zone, warning the pair could tip the euro area into recession. It projects inflation could run near 5% if conditions deteriorate.

Analysis

The European Stability Mechanism flagged Middle East conflict and a U.S. sell-off as the two biggest risks to the euro zone, warning the pair could tip the euro area into recession. It projects inflation could run near 5% if conditions deteriorate.