The European Union economy is at risk of stagflation as a result of the surge in energy prices caused by the Iran war, European Economic Commissioner Valdis Dombrovskis said. "The outlook is clouded by profound uncertainty, but it is clear that we are at the risk of a stagflationary shock, that is to say, a situation where a slower growth coincides with a higher inflation," Dombrovskis told a press conference after a meeting of EU finance ministers on the energy price surge. "This is the case even if the disruptions in energy supplies were to be relatively short-lived. In such a scenario, our analysis suggests that the EU growth in 2026 could be around 0.4 percentage points lower than projected in our autumn economic forecast, and inflation could be up to one percentage point higher," he said.