Monday, 17 August 2026Europe · Analysis
Independent · Brussels & Berlin
Person
Governor of the Bank of Latvia and member of the ECB Governing Council, European Central Bank
Mārtiņš Kazāks says energy shock from Strait of Hormuz closure pushes euro area between baseline and adverse scenarios, while dismissing hopes that Russian economic pain will end Ukraine war.
Markets price a June hike but policymakers insist on meeting-by-meeting approach with Strait of Hormuz blockade creating 'layer cake of shocks' risk
A €500bn fund and debt brake reform were supposed to revive the eurozone's largest economy. Economists now say the spending is too slow and too much goes to rising social costs rather than investment.
Mārtiņš Kazāks argues the trade war forces overdue integration but warns recession risk is not trivial as IMF cuts euro area growth to 0.8% for 2025.
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