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ECB: Underlines It Does Not Foresee a 'Recession' in the Eurozone

Published March 20, 2026, 10:11
ECB: Underlines It Does Not Foresee a 'Recession' in the Eurozone

The European Central Bank (ECB) does not foresee a recession in the Eurozone, according to statements by the Governor of the Bank of France, François Villeroy de Galhau. The ECB has drawn up three scenarios, including a more optimistic one, and none of them predict a recession. This statement comes in response to concerns about the impact of rising energy prices, linked to the war in the Middle East. Villeroy de Galhau stressed that the ECB is closely monitoring the situation and is ready to react to any risks to economic growth and inflation. He also emphasized that energy prices are only one part of inflation and that the spread of inflation to the rest of the economy must be avoided. The ECB kept its key interest rate steady at 2%, despite rising prices, pointing to the uncertainty surrounding the economic outlook. The ECB warned of risks of rising inflation and falling economic growth. Villeroy de Galhau's statement confirms the ECB's attention to the evolving situation and its readiness to take action, if necessary. Villeroy de Galhau dismissed the concept of stagflation, i.e. the simultaneous stagnation of the economy and high inflation, emphasizing that this is not the scenario being considered by the ECB.