European Central Bank Urged to Counter Inflationary Pressures, Says EU Economic Affairs Commissioner

European Union Economic Affairs Commissioner Valdis Dombrovskis stated that the European Central Bank needs to address the rise in European inflation triggered by the Iran war. "It is clear that the European Central Bank must respond to the intensification of inflation," he told reporters upon arriving in Nicosia, Cyprus, to attend a meeting of EU economic ministers. The previous day, the European Commission had lowered its economic growth forecast for the eurozone in 2026. The European Commission's projections indicate that, due to the surge in energy costs caused by the Iran war, the eurozone economy will slow significantly, while inflation is expected to record its fastest pace since 2023. Economists and market participants believe that the intensification of inflationary pressures may prompt the European Central Bank to raise interest rates in June. However, Dombrovskis emphasized the resilience of the eurozone economy and reiterated calls for the region to reduce its dependence on fossil fuels.