Concerned about economic implications of Iran war; simulations show negative EU growth impact of 0.2-0.6 percentage points with inflation increases over 1 percentage point - a stagflationary shock.

Prior to war, EU growth forecast was 1.5% both this year and next; monitoring jet fuel sector; engaged in diplomatic efforts to end war and ensure Strait of Hormuz navigation.

Immediate response includes coordinated oil reserve releases with IEA; fiscal response must be temporary and targeted to avoid increasing oil/gas demand.

Russia emerging as winner from Iran war; additional oil/gas revenue fuels war machine; EU working on €90 billion Ukraine financing package; must maintain pressure on Russia.

G7 oil price cap and sanctions must continue; not time to ease pressure; Russia needs to get serious about peace negotiations.

Welcome news; new Hungarian government willing to support €90 billion Ukraine package and unblock sanctions.

Will allow EU to speak with one voice and provide more forceful support for Ukraine and pressure against Russia.

Still steps away from European army, but EU doing more for security/defense; Russia openly talking about invading other European countries.

Strengthening defense capabilities, industrial base, interoperability; need strong deterrence against Russia.

EU focused on deriving AI benefits through AI Action Plan; strong potential for productivity gains and economic boost.

Looking at supply side (AI gigafactories) and demand side (facilitating uptake); focusing on human-centric AI to mitigate risks.