Eurozone News
LAST UPDATE: June 27, 2025
Spain’s Leader Calls US Levies ‘Doubly Unfair’ in Trade Spat
PM Pedro Sánchez criticized proposed U.S. tariffs on Spain as “doubly unfair,” noting Spain runs a trade deficit with the U.S.—unlike many surplus-exporting EU nations. He defended Spain’s NATO stance and rejected Trump’s economics threats.
Insight
Sánchez’s comments reflect growing political risk as Spain pushes back against U.S. economic pressure while navigating domestic tensions over defense spending. The assertion of unfair treatment could strain EU–U.S. trade talks.
French deficit target in reach, but new spending cuts needed, ministry says
France remains on track to hit its 2025 deficit goal of 5.4% of GDP, but needs an additional €5 billion in cuts due to ministry, health and municipal overspending. PM Bayrou plans a further €40 billion in cuts for 2026.
Insight
With a slim parliamentary majority and rising debt, France faces tough political and social challenges. The fiscal squeeze underscores tensions between deficit control and public services.
French Premier Says Agreement Close on Some Pension Law Changes
PM Bayrou stated that unions and employers have nearly reached an agreement on targeted revisions to the pension reform (raising retirement age to 64), after four months of negotiations.
Insight
Bayrou is seeking compromise to avoid a no-confidence motion and public unrest. Securing a limited deal could stabilize his minority administration and aid fiscal discipline.
