EUR News
LAST UPDATE: June 21, 2025
Georgieva: European Lifestyle is at Risk if Productivity Isn’t Boosted
IMF Chief Kristalina Georgieva emphasized that Europe risks losing its “lifestyle superpower” status unless productivity improves through progress on the single market and regulatory harmonization (euronews.com)
Insight
Georgieva warns that without deeper integration—especially reducing non-tariff barriers—the EU’s limited internal trade capacity will suppress GDP growth. Harmonizing regulations and boosting labor, capital, and service flows could add around 3% to EU GDP over a decade.
Banks Offer Higher Rates on Deposits as BOE Drains Liquidity
UK banks are offering higher deposit rates to attract funds as the Bank of England drains liquidity by reducing its balance sheet and selling government bonds
Insight
Higher deposit rates reflect banks’ need to secure funding amid tighter liquidity. While beneficial for savers, this tightening may reduce lending capacity, putting upward pressure on borrowing costs for households and businesses.
Bank of England reschedules postponed long‑dated bond sale for July
The Bank of England has rescheduled the sale of £600 million in long-dated government bonds to July 21, following an earlier postponement due to market volatility triggered by U.S. tariff concerns
Insight
By delaying and rescheduling gilt sales, the BoE aims to align its quantitative tightening strategy with market conditions, minimizing disruption while continuing to reduce excess liquidity.
Plunging UK Retail Sales Deepen Concern About Broader Slowdown
UK retail volumes plunged 2.7% in May— the sharpest monthly drop since December 2023—mainly driven by falling food, clothing, and household goods sales
Insight
This sudden retail collapse, compounded by tighter liquidity and elevated borrowing costs, signals broader weakness in consumer demand and raises the risk of a slowdown in Q2 GDP.
Poland’s Tusk Calls for Partial Recount of Presidential Ballot
Prime Minister Donald Tusk has requested a partial recount of the June presidential election, citing alleged irregularities in mail-in and overseas ballots
Insight
The demand reflects domestic political instability and hinges on restoring public trust. While a full rerun is unlikely, the recount may become a focal point for Tusk to rally his pro-EU base ahead of future legislative challenges.
Goldman and Citi See Europe’s Economy Powering Stock Rally
Strategists at Goldman Sachs and Citi expect continued strength in European equities, forecasting a roughly 3% gain in the Stoxx Europe 600 by year-end—driven by strong earnings and resilient markets (reuters.com).
Insight
The optimism suggests Europe is benefiting from a capital rotation away from U.S. markets, supported by robust defense and infrastructure investment, making Europe’s stock rally appealing to global investors.
Swiss Pumps $300 Million into a Geneva Left Reeling from US Cuts
The Swiss government is committing over $300 million to maintain Geneva’s status as an international diplomatic hub, offsetting U.S. financing declines at agencies like WHO and UN .
Insight
Switzerland’s move underscores its commitment to global diplomacy, ensuring Geneva remains a viable home for key international organizations amid budget constraints.
EU plans to scrap anti-greenwashing rules after pushback
The European Commission has decided to withdraw the Green Claims Directive, aimed at combatting corporate greenwashing, following objections from center-right lawmakers citing overregulation .
Insight
Rolling back the directive reveals political resistance to stricter ESG standards, posing reputational risks for green credibility among consumers and investors in Europe.
