Workers at a factory in Herten, Germany. Photo: AFP/VNA
According to the economic forecast for Spring 2026, released today (May 21), rising energy prices are pushing inflation higher, undermining consumer confidence and increasing costs for businesses.
According to new forecasts, EU economic growth this year has been revised down to 1.1%, lower than previous predictions. However, the noteworthy point lies not only in the growth figure, but also in the strategic warning issued by the European Commission: the EU is facing its second major energy shock in less than five years.
Following the Russia-Ukraine conflict, the EU has made efforts to diversify its energy sources, conserve energy, and reduce its dependence on imported fossil fuels. However, tensions in the Middle East have shown that the European economy remains vulnerable to fluctuations in the global energy market.
When energy prices rise, the impact spreads rapidly, from people's bills and businesses' production costs to government budgets. Therefore, the EU's current challenge is not only to control inflation, but also to maintain growth while increasing investment in defense, industry, and energy transition.
The European Commission believes that the outlook for 2027 could improve if tensions in the energy market ease, but the biggest risk remains a prolonged conflict, keeping energy costs pegged at high levels.
The European Union's message in its latest forecast is that the European economy remains resilient, but the room for recovery is narrowing. Therefore, the bloc's strategic priorities are targeted support, reducing reliance on imported energy, and strengthening the foundations for long-term growth.
Source: https://vtv.vn/eu-ha-du-bao-tang-truong-nam-2026-100260521202041455.htm
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