STAGFLATION: A NEW CHALLENGE FOR THE EURO ZONE 1/3

The Eurozone ended 2025 on a modest note, with Q4 GDP at 0.2% supported by steady private and public spending. This resilience was anchored by a robust labor market nearing full employment, which buffered household investment against trade adjustments and provided a stable, albeit low-level, foundation for the broader economy. This stability now appears increasingly precarious as external shocks begin to outweigh internal strengths.