The ripple effects of the Middle East conflict are hitting European economies hard. Germany’s Bundesbank warned this week that price increases triggered by the war are spreading through the entire economy, threatening to derail the recovery that had been expected for 2026. The central bank fears that “not much will remain” of Germany’s originally anticipated economic upswing — a sobering assessment that underscores how distant conflicts translate into kitchen-table pain for European households.
Walter Murrow
May 6, 2026
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