Geopolitical events
On May 29, 2026, the European Central Bank (ECB) published research indicating that Eurozone consumers are experiencing a "double scar" from the concurrent economic impacts of the wars in Ukraine and Iran. The study reveals that consumer sensitivity to price changes has returned to 2023 peak levels, despite headline inflation remaining near the 2% target. ECB economists cautioned that this heightened responsiveness to geopolitical instability could trigger a deeper economic contraction than anticipated, as persistent uncertainty continues to weigh on household consumption and regional investment.