Europe Economy

• EU economy chief Valdis Dombrovskis announced that the European Union will not ease sanctions against Russia, despite mounting pressure to mitigate an energy crisis linked to the Iran war. • This decision follows a downgrade in the EU's economic growth forecast and official warnings regarding rising inflation across the bloc. • The EU's firm stance contrasts with the approaches of the US and UK, highlighting a divergence in how major Western powers are managing economic pressures.

• Euro zone economic activity shrank at its fastest rate in over two-and-a-half years during May, according to survey data released Thursday. • The downturn was driven by a war-induced surge in energy prices and living costs, which severely stifled demand for services across Europe. • In response to the economic shock, firms have begun accelerating layoffs to manage the decline in activity.