European credit conditions face a tough winter ahead, caused by escalating geopolitical tensions as a result of the war in Ukraine, soaring energy prices, rising rates, and recessionary risks. Growth in the eurozone is expected to stall in the fourth quarter of 2022 and the first quarter of 2023, with growth in 2023 only reaching 0.3%. The German and U.K. economies will suffer shallow recessions with growth contracting by 0.4% and 0.3% respectively.