The EU are in a massive economic mess according to the latest ECB stability report.

In its last stability report, the ECB noted that non-banks and sovereign wealth funds are increasingly taking risks in the market. The ECB indicated that the danger of property price corrections has increased as a result of escalating home price overestimation. Some families may face significant interest rate increases as a result of these pricing overestimations.

“Risk-taking by non-banks and elevated sovereign and corporate debt are building up,” the research said.

“In particular, households with variable rate mortgages or shorter fixed-rate periods on their mortgages are exposed to an unexpected rise in interest rates, which could adversely affect their ability to service their debt.”

Housing markets have developed swiftly, according to ECB Vice-President Luis de Guindos.

While home markets in the eurozone have grown rapidly, he claims there is little sign of lending criteria tightening to avert a future credit crisis.

“There have been examples of established market players exploring more novel and more exotic investments,” he said.

“In parallel, euro area housing markets have expanded rapidly, with little indication that lending standards are tightening in response.”

This comes as the EU struggles to deal with rising energy costs, the flu epidemic, and the migration issue on the Poland-Belarus border.

Polish authorities have accused the Belarusian government of aiming to destabilise the EU by pushing refugees from the Middle East to the border.

Despite Belarus’ denial, Alexander Lukashenko has had a tense relationship with the EU and is a close supporter of Russian President Vladimir Putin.

Migrants are said to have assaulted Polish security agents, who then deployed tear gas to prevent them from crossing the border.

The EU has also agreed on a new set of measures against Belarus for anybody engaged in helping migrants cross the border.

“They’re scaring us with sanctions,” Mr Kukashenko said.

“We will defend ourselves. We can not retreat.”

Boris Johnson added, “When our Polish friends asked for our help to deal with a contrived crisis on their border with Belarus, we were quick to respond”.

Germany has also put the Nord Stream 2 pipeline approval on hold.

The pipeline will connect Germany and Russia without crossing via Poland or Ukraine.

The German energy authority said that clearance would not be granted until Nord Stream 2’s principal assets were transferred to its German subsidiary.

“A certification for the operation of Nord Stream 2 will only be considered once the operator is organised in a legal shape compliant with German law,” the authority added.