EUR News
LAST UPDATE: June 7, 2025
EU open to lowering tariffs on US fertilisers in trade talks
The European Union is considering reducing tariffs on U.S. fertilizer imports, particularly urea ammonium nitrate (UAN), as part of trade negotiations with the Trump administration.
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This potential tariff reduction aims to compensate for the EU’s decreasing reliance on Russian fertilizer imports, which previously accounted for 24% of its nitrogen fertilizer supply. By lowering tariffs on U.S. fertilizers, the EU seeks to diversify its sources and strengthen trade relations with the U.S. However, the EU maintains that it will not compromise on its stringent food safety standards during these negotiations.
Switzerland hits UBS with $26 billion added capital requirement; shares rise
The Swiss government has proposed that UBS increase its core capital by up to $26 billion following its acquisition of Credit Suisse, aiming to enhance financial stability.
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The proposal requires UBS to fully capitalize its foreign subsidiaries, raising its Common Equity Tier 1 (CET1) ratio to approximately 17%, surpassing global peers. While UBS is granted a six-to-eight-year transition period, the bank argues that such measures could disadvantage it competitively. Nonetheless, UBS shares rose over 6% following the announcement, indicating investor confidence in the bank’s resilience and the Swiss government’s commitment to financial system stability.
UBS Slams ‘Extreme’ $26 Billion Capital Demand in Swiss Proposal
UBS has criticized the Swiss government’s proposal requiring it to raise up to $26 billion in additional capital, labeling the demand as “extreme” and potentially detrimental to its global competitiveness.
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UBS contends that the proposed capital requirements could hinder its ability to compete internationally, especially given its recent expansion following the acquisition of Credit Suisse. The bank is exploring strategies to mitigate the impact, including potential asset sales and reevaluation of its business model. This situation highlights the tension between regulatory efforts to ensure financial stability and the operational flexibility of major financial institutions.
Polish Central Bankers Are More Cautious After Nationalist Win
Following the election of a nationalist president, Polish central bankers are adopting a more cautious approach toward further interest rate cuts, citing political instability and economic uncertainties.
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The recent political shift in Poland has introduced concerns about potential fiscal policy changes and their impact on inflation and economic growth. Central bank officials express hesitancy in pursuing additional rate cuts without clear fiscal direction, emphasizing the need for a balanced approach to monetary policy. This cautious stance reflects the broader challenges central banks face when navigating monetary decisions amid political transitions.
