“An energy shock from the war in the Middle East is set to deliver a punishing blow to Europe’s economy, in a bitter twist for a region that had been hoping to accelerate growth this year after a long stretch of stagnation that angered voters across the continent,” the Wall Street Journal reports.
“Policymakers are scrambling to provide relief, but their options are more limited than during Russia’s invasion of Ukraine four years ago. Government debt and borrowing costs were lower then, and European households and businesses had money from pandemic stimulus programs.”
“Today, borrowing costs are surging across the continent, and government debt in the U.K. and France is at or near the highest share of GDP in at least six decades.”
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