ECB Warns Geopolitical Shock Could Expose Hidden Financial & Operational Risks
The ECB’s May 2026 review lands during a time of war in the Middle East, an energy supply shock, and a financial system that had spent the better part of the last few years congratulating itself for surviving everything else, from inflation spikes to rate hikes, banking scares, political fragmentation, and trade disputes. Somehow the machinery kept moving. Markets absorbed the shocks, volatility faded, and investors returned to doing what investors often do after a few quiet weeks: convincing themselves the danger had passed. The ECB does not appear convinced.