ECB’s Makhlouf Says Prolonged War Brings Adverse Scenario Closer

European Central Bank Governing Council member Gabriel Makhlouf said a lengthy war in the Middle East would steer the euro-area economy toward a worse outcome than the baseline laid out last month by policymakers.

“As the conflict persists without clear resolution, a more prolonged period of higher prices becomes likely,” the Irish official said Wednesday in a presentation. “This approaches the adverse scenario in the staff projections.”