The European Central Bank’s second-in-command went on Bloomberg Television on May 27 to deliver a message that was equal parts warning and preview: the energy supply shock battering the euro area is making the ECB’s job considerably harder ahead of its June monetary policy decision.
ECB Vice President Luis de Guindos used the appearance to walk through the findings of the bank’s newly released May 2026 Financial Stability Review, a document that paints a picture of an economy caught between two very unpleasant forces. Rising inflation on one side. Weakening growth on the other.
The energy shock’s double bind
De Guindos was direct about the challenge facing European policymakers right now.
“The current energy supply shock poses upside risks to inflation and downside risks to economic growth.”
