Threats to Eurozone Financial Stability ‘Remain Elevated,’ Says ECB’s De Guindos

The European Union has raised its growth expectations for the eurozone this year. However, it has lowered its outlook for 2026 due to higher-than-forecast tariffs from the United States, which are anticipated to negatively impact economic growth in the region.

Japan and Switzerland's economies have contracted, primarily due to the impact of US tariffs on exports. The European Commission has raised its growth forecast for the eurozone, citing better-than-expected economic performance in the first nine months of the year. This growth was driven by a surge in exports and strong investment in equipment and intangible assets, particularly in Ireland. The continued growth in the third quarter indicates resilience in the European economy despite challenges.

The European Central Bank's Vice President, Luis de Guindos, stated that threats to Eurozone financial stability remain elevated despite the avoidance of a large-scale trade war. He emphasized that there is still significant uncertainty regarding government policies that could impact the financial system. This statement highlights ongoing concerns about the economic environment in the Eurozone and the potential risks that could arise from policy changes.

European Central Bank Vice President Luis de Guindos stated that financial-stability risks remain elevated due to an unpredictable outlook for the global economy and trade. This statement highlights ongoing concerns regarding the stability of financial markets amid economic uncertainties.