Is Europe Sliding Towards Stagflation?

AI Briefing

• – Europe's flash composite PMI fell to 48.6 in April, signaling a quarterly GDP decline of around 0.1%.
• – The European Commission's flash consumer-confidence indicator dropped to -20.6 in the euro area and -19.4 in the EU, the weakest readings since 2022.
• – European governments are considering policy measures that are likely to backfire, including windfall profit taxes, demand control, and rationing, rather than supporting companies that can secure supply and strengthen chains.