European Central Bank: Recession ‘has become more likely’

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — It’s looking more like a recession is coming in Europe. That’s the takeaway from a financial stability report that the European Central Bank released Wednesday. The monetary authority for the 19 countries that use the euro currency says a downturn later this year and lasting at least six months “has become more likely.” That’s a warning that banks could see more losses from loans that companies can’t repay and that financial markets could see bumpy rides ahead. Underlying the ECB’s caution: The effect of inflation on consumers who have less spending power as Russia’s war in Ukraine sent energy prices soaring.