Washington, May 29, 2026: The Heads of the International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization met on May 28 as part of the high-level coordination group established in April to maximize their institutions’ response to the energy, trade, and economic impacts of the war in the Middle East. Following the meeting, they issued the statement below:  “The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security,...

Europe's startup and scaleup ecosystem has been growing steadily, according to the first-ever European Startup and Scaleup Scoreboard (ESSS) published today by the European Commission.  The scoreboard reveals a clear trend: pro-startup policies drive real results. Since 2020, the baseline year for the Scoreboard, 20 out of 27 EU Member States have improved their performance, proving that targeted support for founders fuels innovation, job creation, and economic growth. Where policy leads, founders follow The Scoreboard highlights a direct link between innovation-friendly regulations, access to...

Blog | Geopolitical shocks influence consumer expectations about inflation and growth. This blog explores how the wars in Ukraine and Iran affect the way households think about the economy and shows how the scars of past experiences amplify reactions to subsequent geopolitical conflicts. Recent movements in euro area consumers’ inflation and growth expectations show that geopolitical shocks influence households’ economic beliefs. Drawing on the ECB’s Consumer Expectations Survey (CES), this blog post compares households’ reactions to the 2022 invasion of Ukraine with...

Blog | As governments intervene more, evidence shows that the benefits are modest and depend on thoughtful design. Industrial policy, the use of government interventions to support or develop specific firms and industries, has grown more popular in recent years—especially in response to crises. The war in the Middle East is the latest example, with high energy prices and geopolitical upheaval prompting action. In addition to economy-wide support measures, such as fuel price caps and reduced excise duties, at least 305...

Executive summary Before the outbreak of the conflict in the Middle East, the global economy was gaining momentum. A challenging geopolitical environment and US tariff uncertainty continued to weigh on growth, but easing inflation and a robust investment cycle related to the unfolding AI revolution provided important support. The EU economy was likewise strengthening while inflationary pressures were further abating. Weak competitiveness was a source of concern and public finances required attention, but the economy also showed resilience, including a...

Blog | The economic shock caused by the war between the United States and Iran has quickly fed into euro area firms’ expectations. Daily responses to an ECB survey show an immediate increase in expected input costs, selling prices and short-term inflation. Firms' expectations for costs, prices and the broader macroeconomic environment are central to their decisions on wages, investment and employment. These decisions, in turn, determine how economic shocks are transmitted to the economy. When a major geopolitical event occurs,...