According to the ECB, the ongoing price surge as a result of the Ukraine war and the slowdown in the economy are increasing the dangers for the stability of the financial system in the euro area. “People and businesses are already feeling the effects of rising inflation and slowing economic activity,” said ECB Vice-President Luis de Guindos on the presentation of the European Central Bank’s (ECB) Financial Stability Report. The risks to financial stability have increased. A technical recession in the euro area has become more likely. Economists speak of it when the economic output of an economy shrinks in two consecutive quarters. In the third quarter, gross domestic product grew by only 0.2 percent compared to the previous quarter.
Financial stability – ECB warns of risks – Economy
