Economic uncertainty in Europe surpasses COVID-19 levels

European Central Bank Vice President Luis de Guindos stated that economic uncertainty is now greater than during the COVID-19 pandemic. He attributed this to the current U.S. administration's less cooperative stance on multilateral trade. Several ECB officials expressed concerns about a potential trade war and its effects on the global economy. They noted that inflation and growth predictions are highly uncertain, complicating future interest rate decisions. Despite some positive economic indicators, such as declining inflation and improving financing conditions, consumer spending remains weak. Guindos mentioned that geopolitical tensions are affecting consumer confidence, impacting overall economic activity.