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GZERO Europe
Watch insights on the latest news about Europe from Carl Bildt, former Prime Minister and Foreign Minister of Sweden.
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In this episode of GZERO Europe, Carl Bildt examines how the war in Iran is driving up energy prices, fueling inflation, and raising stagflation fears across Europe.
Support for the conflict, Bildt says, is “severely limited” across the continent, with many seeing it as “a completely unnecessary war with uncertain prospects.” He warns that Europe now faces “a serious inflation shock,” adding pressure to already weak growth.
Governments are responding with subsidies, tax cuts, and, in some cases, rationing, but Bildt argues their room to maneuver is limited. The broader fallout, he says, could include deeper economic pain, renewed strains with the US, and rising fears of stagflation and new refugee flows into Europe.
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