The soaring energy prices worsen the slowdown of EU economic growth and inflation levels.

On the 4th local time, European Commission's Commissioner for Economic Affairs, Mr. Dombrovskis, stated at a press conference that due to the conflict in the Middle East, energy prices have soared, with oil prices breaking through $125 per barrel last week. The rise in energy prices is affecting every participant in the European economy, including businesses and households, pushing the EU economy towards slowing growth and worsening inflation. Dombrovskis emphasized that declining confidence, tightening financing conditions, and weak external demand are all exacerbating its direct impact. The overall economic impact will depend on the evolution of the conflict, especially its effects on energy supply and infrastructure. However, due to the high levels of deficits and debt in EU countries, high interest rate environment, and the urgent need to increase defense spending, the EU's room for maneuver is very limited.