BRUSSELS, May 21 (Xinhua): The European Commission lowered its 2026 growth projections and raised its inflation outlook in its spring forecast released on Thursday, warning that the Middle East conflict has brought the bloc a stagflationary shock that policymakers may lack the tools to counter.

Europe's brief post-pandemic recovery has given way to a period of stubbornly low growth and persistently high inflation -- a combination that is forcing a rethink of whether the continent faces a temporary energy spike or a lasting shift in its economic trajectory.

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