EUR News
LAST UPDATE: July 2, 2025
EU blocks Britain’s attempts to join pan‑European trading bloc
The EU has blocked the UK’s bid to join the Pan‑Euro‑Mediterranean convention, which would ease post‑Brexit supply chain issues by allowing flexible sourcing of inputs under free‑trade deals.
Insight
The rejection underscores Brussels’ continued leverage, signaling that post‑Brexit concessions require deeper alignment on frameworks like the Windsor deal. It highlights persistent tension even amid a “reset” of relations.
UK ministers warn welfare U-turn will mean less money for other priorities
After shelving most planned cuts to Personal Independence Payments (PIP) to avoid Commons defeat, ministers warned this reversal leaves a fiscal hole that must be filled by higher taxes or spending cuts elsewhere.
Insight
The U‑turn reveals deep internal party divisions and constrains Labour’s fiscal flexibility. With £5 billion in savings wiped out, the government faces tough choices on how to finance future spending without raising taxes.
Turkish trade deficit widened by 39% in June, minister says
Turkey’s trade deficit surged to an estimated USD 8.2 billion in June 2025, a 39% increase from June 2024, as imports (up 15.2%) outpaced export growth (7.8%), according to Trade Ministry figures.
Insight
The sharp widening reflects rising domestic demand and heavy energy imports, pressuring the lira and foreign reserves. It underscores Turkey’s vulnerability to external imbalances, increasing urgency for export diversification and import-substitution efforts.
Europe’s Climate Resolve Faces Big Test as EU Unveils 2040 Goal
The European Commission proposed a binding law targeting a 90% cut in greenhouse gas emissions by 2040 (from 1990 levels), introducing ambitious interim climate targets.
Insight
This milestone highlights the EU’s determination in climate action, but raises questions about political buy-in and economic costs. Balancing industrial competitiveness with green decarbonization and member-state consensus will be critical.
