EUR News
LAST UPDATE: June 13, 2025
EU confirms delay of new banking rules until 2027
The European Commission officially postponed the implementation of the Fundamental Review of the Trading Book (FRTB)—part of Basel III reforms—to January 1, 2027, citing the need for alignment with delayed global counterparts. (reuters.com)
Insight
By waiting for similar delays in the U.S. and UK, the EU aims to maintain competitive balance for its banks and avoid regulatory divergence that could disadvantage European lenders.
Czech President Warns Country May ‘Stay Behind’ Without Euro
Czech President Petr Pavel cautioned that Czechia risks economic and geopolitical marginalization if it delays euro adoption, suggesting it could miss trade benefits and influence in Europe.
Insight
His remarks signal a push to reframe the euro debate—aligning Czech monetary policy more closely with EU standards to enhance competitiveness and regional standing.
Czech government faces no-confidence vote over bitcoin scandal
The opposition ANO party initiated a no-confidence motion after former Justice Minister Pavel Blažek resigned for accepting a $45 million bitcoin donation from an ex-convict. The government majority is expected to survive, but public trust is shaken ahead of elections.
Insight
Though likely to fail, the vote highlights concerns over transparency and ethics—potentially weakening the ruling coalition and strengthening opposition ahead of the October polls.
Serbia Unexpectedly Holds Rates as Caution Tops Growth Pace
Serbia’s central bank kept its benchmark interest rate steady at 4%, prioritizing caution despite a projected GDP growth of ~3% in 2025 and 4% in 2026, citing global slowdown and geopolitical fragmentation risks (bloomberg.com, reuters.com)
Insight
The decision indicates that policymakers value buffer maintenance over stimulating growth, mindful of external risks like declining exports and FDI, even as buffers remain strong.
Denmark Approves US Troops on Danish Soil Amid Greenland Tension
Denmark’s Parliament authorized the presence of U.S. military bases on its territory, expanding access beyond airbases. The move, passed 94–11, includes a built-in right to terminate if Greenland is threatened
Insight
The authorization bolsters NATO deterrence amidst Arctic tensions, although critics fear it compromises sovereignty and could inflame U.S.–Greenland ambitions.
British exports to US suffer record hit from Trump tariffs
UK goods exports to the U.S. plunged 33% in April (from £6.1bn to £4.1bn), the largest monthly drop on record, largely due to tariffs—steel/aluminum (25%) and auto (27.5%)—broadening the UK’s trade deficit
Insight
Tariff shocks are weighing heavily on exporters, highlighting supply chain disruptions and prompting front-loading in March. Broader tariffs risk undermining UK economic growth and trade recovery.
Poland sees average annual inflation in 2026 at 3%
Poland projects its average inflation will moderate to 3% in 2026, from an estimated 4.1% in 2025, alongside GDP growth of roughly 3.5% next year
Insight
This outlook suggests macroeconomic stabilization, giving the central bank flexibility to ease policy. However, growth forecasts hinge on global trade resilience and prudent fiscal management.
