ECB's Stournaras says Iran conflict could have large macroeconomic impact; Middle-East conflict is an adverse supply shock; EU should issue debt jointly to finance defence, green transition, and strategic investment

Stournaras's comments highlight the potential macroeconomic risks stemming from the Iran conflict, framing it as an adverse supply shock that could impact energy prices and broader economic stability in the EU. His advocacy for joint debt issuance suggests a commitment towards strategic investment, particularly in defense and green transitions, which may alter fiscal dynamics and influence market sentiments towards EUR and fixed income assets.