The outlook for euro area financial stability is being shaped by geoeconomic stress and energy supply disruptions, with the severity and duration of the fallout still uncertain, according to the May 2026 Financial Stability Review, which is published today by the European Central Bank (ECB). “The current energy supply shock poses upside risks to inflation and downside risks to economic growth,” said ECB Vice-President Luis de Guindos. “It could also increase market volatility and challenge debt servicing capacities as financing costs rise in an environment of weaker economic growth.” The global financial system and ... (full story)