ECB supervisors are incorporating risks from trade tariffs, cyber attacks, and potential global dollar shortages into banks’ stress assessments. They plan thematic tests for geopolitical risks in 2026.

Germany’s and France’s finance ministers pledged joint support to improve access to finance for European startups.

Chancellor Merz warned that the EU stands ready to retaliate if U.S. tariffs take effect and urged rapid resolution of the transatlantic trade dispute to protect key industries.

PM François Bayrou proposed scrapping two public holidays (likely Easter Monday and May 8), freezing welfare benefits and public wages, and more austerity to save €43.8 billion and reduce the budget deficit from ~5.8% to ~4.6% by 2026 and 3% by 2029.

Italy used national security grounds under its “golden power” law to impose conditions on UniCredit’s takeover of Banco BPM; the EU questioned the measures and issued a formal challenge that could lead to ordering Italy to withdraw them.

Spain’s GDP per capita is projected to exceed ~$42,300, surpassing Japan’s ~$41,700. Growth is driven by robust domestic demand, vibrant tourism, and a strong services sector.

The IMF validated France’s mid‑term fiscal adjustment plan, citing spending rationalization—especially in public administration and social security—as appropriate to strengthen public finances.