EUR News
LAST UPDATE: July 7, 2025
Portugal Sees EU, US Reaching Trade Deal With ‘Very Low’ Tariffs
Portuguese Finance Minister Joaquim Sarmento said he expects an EU–U.S. trade deal with “very low” tariffs—potentially under 10%—could be finalized by the July 9 deadline, pending updates from EU negotiators .
Insight
Portugal’s optimism underscores rising confidence in a compromise that preserves trade flows, signaling political alignment within the EU to prevent economic disruption.
Confidence vote spells scrutiny, if little danger, for EU chief
On July 7 in Brussels, European Commission President Ursula von der Leyen faced a confidence debate and upcoming vote Thursday initiated by far-right critics over alleged missteps including transparency in vaccine deals .
Insight
While von der Leyen is expected to survive, the challenge reflects growing parliamentary assertiveness and accountability concerns. It may influence EU transparency practices and reinforce center‑right–far‑right policy alliances.
France’s Macron to visit UK as Starmer eyes ‘reset’ with EU
French President Macron will begin a state visit on July 8–10, including a UK Parliament address and a Franco‑British Summit with PM Starmer. Discussions will focus on defense, Ukraine support, and “resetting” relations post‑Brexit .
Insight
This visit symbolizes a diplomatic thaw, leveraging shared security concerns to deepen defense and European cooperation. It positions the UK/EU relationship as strategically aligned despite Brexit.
Post-Brexit export drive hampered by UK trade finance regulations, ICC warns
The ICC UK branch warned that outdated regulation is stifling post‑Brexit export finance, putting a £22 billion trade‑finance gap at risk. They urged the FCA and PRA to streamline compliance, modernize KYC processes, and speed Basel 3.1 reforms to support SME exports .
Insight
While the UK digitized export procedures in 2023, bankers say capital and KYC rules still choke SMEs’ access to finance. If reforms lag, the UK risks losing ground to more agile competitors.
UK: Ministers to launch £500mn scheme to help struggling families
The UK government under PM Keir Starmer unveiled a £500 million “Best Start” programme on July 6 to support disadvantaged families. It will establish up to 1,000 family hubs offering parenting, health, youth, and debt‑advice services, aiming to help 500,000 children by 2028. (ft.com)
Insight
Reviving the Sure Start model, Starmer seeks to tackle childhood inequality early and rebuild social infrastructure. Launching amid declining Labour poll ratings, it also signals a proactive governance approach ahead of domestic and fiscal pressures.
Swedish inflation picks up in June, puts more rate cuts in doubt
Flash data from Statistics Sweden showed June headline inflation rose 0.5% month‑on‑month and 2.9% year‑on‑year; core inflation hit 3.3%, surpassing forecasts. Analysts now expect the Riksbank to pause further rate cuts, despite a recent reduction to 2.00%.
Insight
The inflation surprise undermines expectations of additional monetary easing. Riksbank policymakers will likely maintain policy rates through August, prioritizing inflation control even amid signs of softening demand and global uncertainty.
