EUR News
LAST UPDATE: June 26, 2025
EU Commission in charge of trade talks with US, Spain says after Trump tariff threat
Spain reaffirmed that trade negotiations with the U.S. are handled by the European Commission—not Madrid—following Trump’s tariff threat over defense spending .
Insight
This reasserts the EU’s collective trade authority and highlights potential tensions between national diplomacy and bloc-level control, reinforcing unified EU-U.S. dialogue channels.
UK to focus new trade strategy on boosting services exports
PM Keir Starmer is set to unveil a service-led trade strategy, leveraging the £500 billion UK service sector. It includes regulatory reform (“behind the border”), a new “Ricardo fund” for SMEs, and stronger anti-dumping measures amid rising global protectionism .
Insight
The UK is repositioning its trade policy post‑Brexit to emphasize services and regulatory alignment over traditional goods-focused FTAs, reflecting its comparative advantages and responding to trade uncertainties.
King Charles to host Trump in second UK state visit later this year
Buckingham Palace confirmed that King Charles has invited Donald Trump for a state visit in September 2025. It will be Trump’s second state visit—the first by a US leader under a modern monarch—and will feature formal ceremonies in London and Windsor .
Insight
The invitation highlights enduring UK–US ties and strategically broadens relations beyond party lines. It is symbolically powerful, reflecting the UK’s openness to diverse leadership and continuity in diplomacy.
Czechs Hold Rates With Price Risks Limiting Room for More Cuts
The Czech National Bank held rates steady at 3.5%, citing persistent price pressures even after recent cuts—the lowest level since 2021. Inflation risks are limiting further easing .
Insight
The decision reflects cautious central bank policy: balancing support for growth with vigilance on inflation. Further cuts may be paused unless inflation dynamics ease.
Poland Floats New Bank Tax to Bolster Budget After Elections
Poland’s Finance Minister proposed a new tax on banks, aimed to generate up to PLN 2 billion (~$546 million) annually from reserve interest. The measure forms part of efforts to reduce a fiscal deficit projected above 6% of GDP following recent elections (reuters.com, bloomberg.com, news.bloombergtax.com).
Insight
The proposal signals Poland’s need to shore up public finances through targeted financial-sector levies, balancing post-election political commitments against fiscal constraints.
EU eases state aid rules to boost green projects, cut carbon footprint
The European Commission relaxed state aid regulations until 2030 to accelerate decarbonization. Measures include grants, tax breaks, interest subsidies, and electricity price relief (up to €200 m), with co-investment from pension funds required to support heavy industries in green transitions .
Insight
This indicates a strategic pivot toward industrial-driven climate action. By making state support more accessible and flexible, the EU aims to bolster competitiveness against U.S. and China while steering its heavy industry into cleaner pathways.
