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ESM sees euro zone recession if US sell-off, new Middle East war hit simultaneously

Reuters ECONOMY
Published July 06,2026
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A new Middle ⁠East ⁠conflict and a U.S. assets sell-off ⁠are the two biggest risks to the eurozone, ⁠which, if ⁠twinned, could tip the euro area into a ⁠recession and send inflation near 5%, the European ⁠Stability ‌Mechanism said ‌in ⁠a ‌report on Monday.