Europeans increasingly see the EU as a safe haven in a troubled world, but expect stronger action on security, inflation and falling living standards.

The Spring 2026 Economic Forecast projects weaker economic activity in the EU, as the conflict in the Middle East triggers a new energy shock that reignites inflation and weighs on growth. GDP growth is expected to slow in 2026, while inflation is revised sharply upwards, mainly because of higher energy prices. The outlook could improve slightly in 2027 if tensions in energy markets ease.

The European Commission has fined Temu €200 million under the Digital Services Act for failing to properly assess the systemic risks linked to illegal products sold on its platform. According to the Commission, Temu underestimated the likelihood that EU consumers would encounter unsafe or non-compliant goods and failed to examine how its platform design, recommender systems and influencer promotion programmes could amplify those risks.