EUR News
LAST UPDATE: June 16, 2025
Not the time to mess with EU-US trade, EU’s Costa says
EU trade commissioner urged Washington not to disrupt transatlantic commerce amid escalating tariff threats, warning of mutual economic harm.
Insight
The message reinforces EU unity and signals readiness for negotiation; but legal remedies like WTO dispute settlement may be invoked if diplomacy fails.
EU prepared to accept flat 10% US tariff with conditions, Handelsblatt reports
According to Handelsblatt, EU is reportedly prepared to accept a uniform 10% U.S. tariff, contingent on concessions—in areas like digital services and border carbon adjustments.
Insight
This compromise shows EU pragmatism but could stir internal dissent over industry-level tariff adjustments; deal success depends on securing reciprocal U.S. commitments.
Switzerland cuts 2025 economic outlook as trade war risks weigh
Swiss central bank trimmed GDP growth forecast for 2025, citing trade tensions between major economies, a stronger franc harming exports, and weak external demand.
Insight
Switzerland is vulnerable to global trade volatility and currency shocks; monetary policy must balance inflation containment and export competitiveness.
Hungary Nominates Palotai as Central Bank Deputy Governor
Hungary’s ruling party nominated economist Miklós Palotai to the central bank’s deputy governor role, seen as a continuation of loose monetary policy.
Insight
The appointment signals sustained support for growth over inflation control, aligning with the government’s fiscal expansion but risking inflation or currency weakness.
Trump’s Greenland threats are ‘not what allies do’: Macron
During a visit to Nuuk, French President Emmanuel Macron criticized former President Trump’s past rhetoric about “buying” Greenland, calling it inappropriate behavior for allies.
Insight
Macron’s rebuke reflects European opposition to U.S. geopolitical assertiveness and underscores support for Greenland’s autonomy amid Arctic resource competition.
Not the time to mess with EU-US trade, EU’s Costa says
EU Trade Commissioner Pedro Costa warned the U.S. against imposing new tariffs, stressing that both sides should prioritize economic stability and partnership.
Insight
Costa’s message signals a diplomatic effort to de-escalate trade tensions and foster transatlantic economic alignment amid growing protectionist pressures.
EU prepared to accept flat 10% US tariff with conditions, Handelsblatt reports
According to Handelsblatt, the EU is willing to accept a 10% flat U.S. tariff on goods in exchange for digital and carbon-related concessions from Washington.
Insight
This compromise reflects EU pragmatism, aiming to maintain access to the U.S. market while navigating complex policy linkages in global digital and environmental governance.
Switzerland cuts 2025 economic outlook as trade war risks weigh
Switzerland revised its 2025 GDP forecast downward, citing global trade tensions and currency appreciation as drags on export performance.
Insight
The adjustment underscores the Swiss economy’s sensitivity to global trade dynamics and highlights the challenges of maintaining competitiveness amid strong franc pressures.
Hungary Nominates Palotai as Central Bank Deputy Governor
Hungary’s government nominated Miklós Palotai, an advocate of loose monetary policy, as Deputy Governor of the central bank, suggesting continued dovish stance.
Insight
The nomination reinforces Hungary’s alignment with growth-oriented policies, but may raise concerns over inflation control and central bank independence.
Trump’s Greenland threats are ‘not what allies do’: Macron
AFP
During his June 15 visit to Nuuk, Macron criticized former President Trump’s talk of annexing Greenland, stating “that’s not what allies do.” He underscored European solidarity and respect for Greenland’s autonomy amid strategic interest in rare‑earth minerals.
Insight
Macron’s stance signals EU backing for Greenland and sends a diplomatic rebuke to U.S. expansionist rhetoric, reinforcing Greenland’s self‑determination and counterbalancing geopolitical ambitions.
