Displaying items by tag: economic stability

Looking on at the conflict in the Middle East, the president of the European Investment Bank (EIB), Nadia Calviño, has urged Europe to strengthen its ‘strategic autonomy’ more quickly. She warned that conflict and geopolitical uncertainty threaten economic stability and investment. European leaders are particularly concerned about the possibility of another energy shock after Iranian strikes in the Gulf unsettled global markets. Gas prices in Europe recently surged sharply, while oil prices also rose. Since Russia’s invasion of Ukraine in 2022 disrupted supplies of cheap Russian gas, Europe has worked to diversify energy sources, turning to partners such as the USA, the Gulf states, and Azerbaijan. Calviño said European businesses have adapted, though higher energy costs still affect competitiveness compared with regions with cheaper power. She also emphasised Europe’s commitment to cooperation, international law and peaceful engagement, expressing hope that diplomatic tensions will ease despite the difficult global environment.