European Economy Commissioner Valdis Dombrovskis says the Iran war has pushed Europe into a stagflationary spiral, combining rising prices with slowing growth — just as the Commission prepares to release its spring forecasts.
Dombrovskis explicitly links the Iran war to a stagflationary shock hitting the European economy.
Stagflation — high inflation plus stagnant growth — is particularly hard to counter with standard policy tools.
The EU's spring economic forecasts were due Tuesday, covering all member states including Romania.
Romania's central bank governor flags a well-known but persistent asymmetry in retail pricing that keeps inflation elevated even when the exchange rate improves.
Retailers push prices up when the leu falls, but do not reverse increases when it rises.
The BNR governor identifies this asymmetry as a structural driver of inflation.
The pattern narrows the central bank's room to ease monetary policy.
Automobile Dacia SA has decided against expanding its Mioveni plant, choosing profitability over production growth. The company's CEO met interim Prime Minister Bolojan in Bucharest on Tuesday.
Dacia will not expand its Mioveni plant in Argeș county, reversing earlier growth plans.
The company will prioritise profit growth over increasing production capacity.
Dacia's CEO met interim Prime Minister Bolojan in Bucharest on Tuesday.