Europe's economy is in a stagflationary trend due to the surge in energy prices caused by the Iran war, but governments must be wary that generous fiscal support could risk a fiscal crisis or higher ECB rates, top EU officials said today. The European Commission forecast yesterday that euro zone economic growth will slow to 0.9% in 2026 from 1.3% in 2025 and inflation will jump to 3% from 1.9%, well above the European Central Bank's target of 2%. "There is stagflationary pressure, but Europe is resilient," the chairman of euro zone ‌finance ministers Kyriakos Pierrakakis said. [...]