ECB Official Highlights Trade Protectionism as Major Economic Risk

Olli Rehn, a prominent member of the European Central Bank's Governing Council, expressed concerns over the increasing trend of trade protectionism. This comes as the United States, under President Donald Trump, is set to impose new tariffs on European goods, potentially escalating tensions and impacting the Eurozone's fragile economic recovery.

Eurozone's Growth and Inflation Outlook

Despite a weakened growth outlook for the Eurozone, Rehn reassured that the disinflationary process is proceeding as expected. He emphasized the ECB's cautious approach, stating, "We will not commit to a particular monetary policy stance due to the prevailing uncertainties." The ECB aims to retain flexibility in its future policy decisions to navigate through these challenging times.