Eurozone News
LAST UPDATE: May 22, 2025
IMF urges sustained French budget squeeze to rein in deficit
IMF urges France to implement sustained fiscal tightening to control its growing budget deficit.
Insight
Political fragmentation may hinder the implementation of necessary fiscal reforms.
France’s private sector contracts for ninth month in May, PMI shows
France’s private sector activity declined for the ninth consecutive month in May.
Insight
Persistent contraction indicates ongoing economic challenges and potential need for policy intervention.
Euro zone May business activity surprisingly contracts, PMI shows
Eurozone business activity unexpectedly contracted in May, driven by a downturn in services.
Insight
The contraction highlights vulnerabilities in the services sector, affecting overall economic stability.
German business activity contracts in May amid services slump, PMI shows
Germany’s business activity contracted in May due to a sharp decline in the service sector.
Insight
The downturn in services underscores the fragility of Germany’s economic recovery.
German minister sees ‘positive signals’ after meeting with Bessent
German Finance Minister Klingbeil reported positive signals after meeting with US Treasury Secretary Bessent.
Insight
Improved dialogue may ease trade tensions and foster economic cooperation between Germany and the US.
Bundesbank’s Nagel sees progress on tariffs but work to be done
Bundesbank President Nagel noted progress in tariff negotiations but emphasized that challenges remain.
Insight
Ongoing tariff issues continue to impact Germany’s economy, highlighting the need for further resolution.
ECB’s Vujcic Says Inflation Is Slowly Converging to 2% Target
ECB’s Vujcic stated that inflation is gradually aligning with the 2% target, expected by early 2026.
Insight
The ECB’s monetary policy appears effective, but vigilance is necessary to maintain the trajectory.
