On May 21, 2026, the European Commission released its Spring Economic Outlook, significantly downgrading the regional economic growth forecast for 2026. The report shows that the EU’s 2026 GDP growth forecast was lowered to 1.1%, and the euro zone growth forecast dropped to 0.9%, both lower than previous expectations. The European Commission pointed out that the sluggish economic recovery is mainly dragged by three core factors. First, the prolonged geopolitical tensions in the Middle East have kept global energy prices volatile at a high level, pushing up European import costs and squeezing corporate profit margins. Second, persistent imported inflation has suppressed residents’ disposable income and weakened consumer willingness. Third, energy-intensive industries such as manufacturing and automobiles in core European countries have insufficient recovery momentum. Core European economies face prominent structural pressures. Germany’s industrial output continues to fluctuate at a low level, while France’s fiscal deficit remains high, bringing potential risks to regional fiscal stability. Although inflation is expected to ease slightly in 2027, energy price uncertainties will continue to restrict economic recovery. To reverse the sluggish growth trend, the EU plans to further promote energy diversification and green transformation, reduce dependence on imported fossil energy, and optimize fiscal and monetary coordination. It will also strengthen industrial policy support to boost manufacturing vitality and stabilize employment and consumption. Industry institutions predict that the European economy will maintain a weak recovery throughout 2026, and a strong rebound is unlikely amid persistent geopolitical and energy market uncertainties.