EUR News
LAST UPDATE: May 22, 2025
French, German leaders call on EU to scrap supply chain audit law
French President Emmanuel Macron and German Chancellor Friedrich Merz have urged the EU to abandon the proposed Corporate Sustainability Due Diligence Directive (CSDDD), citing concerns over its economic impact.
Insight
The opposition from two of the EU’s largest economies highlights the tension between enforcing ethical supply chain practices and maintaining global competitiveness. The debate underscores the challenges in balancing sustainability goals with economic interests.
UK inflation rockets in April, Reeves ‘disappointed’ by data
UK inflation surged to 3.5% in April from 2.6% in March, driven by a 27.5% rise in airfares and increased service costs. Finance Minister Rachel Reeves expressed disappointment over the unexpected rise.
Insight
The sharp increase in inflation complicates the Bank of England’s monetary policy, potentially delaying interest rate cuts. It also raises concerns about the cost of living and economic stability, putting pressure on policymakers to address inflationary pressures.
Reeves to Meet Bessent as Questions Linger Over UK-US Deal
UK Chancellor Rachel Reeves is set to meet US Treasury Secretary Scott Bessent to finalize details of a UK-US trade agreement, amid ongoing discussions and uncertainties.
Insight
The meeting signifies efforts to strengthen UK-US economic ties post-Brexit. However, lingering questions about the deal’s specifics reflect the complexities of international trade negotiations and the need for clear frameworks to ensure mutual benefits.
Iceland’s central bank cuts key interest rate to 7.50%
Iceland’s central bank reduced its key interest rate by 25 basis points to 7.50%, aiming to support economic growth amid global uncertainties.
Insight
The rate cut reflects a cautious approach to stimulate the economy while monitoring inflationary trends. It indicates the central bank’s responsiveness to both domestic economic conditions and external factors affecting financial stability.
Monetary policy in Sweden is well-balanced, Riksbank’s Seim says
Riksbank Deputy Governor Seim stated that Sweden’s monetary policy is well-balanced, with inflation aligning with targets despite global trade tensions.
Insight
Sweden’s stable monetary policy amidst global uncertainties showcases effective economic management. Maintaining inflation targets while navigating external challenges demonstrates the central bank’s commitment to financial stability.
