EUR News
LAST UPDATE: July 9, 2025
EU Closes In on US Trade Deal, Testing Bloc’s Unity
The EU is nearing a framework agreement with the US ahead of a July 9 deadline. The deal includes a 10% base tariff on most goods, but concessions vary across sectors. Export-reliant countries like Germany and Italy push for swift resolution, while France and Spain advocate for tougher terms.
Insight
This deal is testing EU cohesion: export-heavy nations need relief, but others worry about unfair concessions. The underlying tension highlights structural divisions in EU trade policy under time pressure.
EU to Protect Airbus in US Trade Deal as Ferrari Set to Lose Out
The EU seeks to safeguard Airbus from US tariffs by pushing for carve-outs, but luxury carmakers like Ferrari may be sidelined in the deal. The pact will balance aerospace protection with broader market access.
Insight
The focus underscores Europe’s strategic defense of key industries while making selective trade-offs. It reflects pragmatic prioritization: protecting flagship sectors over niche luxury auto brands.
EU to set up Critical Chemical Alliance to secure supply chains
Reuters
The European Commission will establish a Critical Chemical Alliance involving member states and industry to reinforce domestic production of essential chemicals (e.g., methanol), ease dependency on imports, and apply state aid, procurement rules, and regulatory simplification.
Insight
The alliance marks a major push for industrial sovereignty, recognizing chemical supply as a strategic asset. It blends industrial policy with trade strategy and aligns with recent efforts in critical minerals.
Romanian central bank holds benchmark rate, says tax hikes to push inflation higher
Romania’s central bank held interest rates steady, citing upcoming tax increases likely to raise inflation. The move reflects a cautious stance to balance inflation containment with economic growth.
Insight
The decision reflects judicious policymaking in the face of fiscal tightening ahead. It signals that monetary policy must adapt to fiscal dynamics—especially if tax hikes risk reigniting inflation pressures.
EBRD lends Moldova 400 million euros for energy security
The European Bank for Reconstruction and Development approved a €400 million loan to assist Moldova in ensuring clean, affordable energy supply, supporting infrastructure upgrades and reducing reliance on external gas and electricity sources.
Insight
The significant investment reflects Moldova’s pivot to EU-aligned energy systems following regional tensions. It demonstrates international backing for energy independence and green transition in Eastern Europe.
City of London sees ‘new era’ of post‑Brexit ties with Paris
The Lord Mayor of the City of London, Alastair King, said post‑Brexit relations with Paris are entering a “new era,” with greater collaboration between financial hubs as President Macron visits the UK.
Insight
This highlights a thaw in UK‑France financial cooperation, signaling shared interest in bolstering cross‑Channel capital and trade ties as Brexit fallout subsides.
European second‑quarter corporate profits expected to fall 0.2%
Forecasts show a 0.2% year‑on‑year decline in Q2 profits, down from prior expectations of 0.6% growth. US tariff uncertainties and weaker revenues (‑3.0%) are cited, with Irish and Polish firms outperforming, while German and Norwegian companies lag.
Insight
The update shows trade tensions with the US are weighing on European earnings. Diverging results across countries point to varying resilience—exporters in Ireland and Poland may be better positioned than German manufacturers.
