EUR News
LAST UPDATE: July 17, 2025
EU unveils blueprint for boosted 2 t euro budget
The European Commission proposed a €2 trillion Multiannual Financial Framework (2028–2034), earmarking €100 billion outside to support Ukraine, while boosting spending on defense, climate, tech, migration, and border management (TradingView, AP News).
Insight
This ambitious plan signals the EU’s determination to enhance strategic autonomy and crisis-readiness, though member states are divided, especially over funding and agricultural cuts.
Proposed EU budget includes 100 bln euros for Ukraine, says EU’s von der Leyen
Ursula von der Leyen confirmed the new EU budget plan includes €100 billion dedicated to Ukraine’s recovery and EU accession path .
Insight
The allocation underscores the EU’s long-term commitment to Ukraine’s stability and integration, marking a rare direct budgetary support.
Bank of England will aim for ‘ample’ reserves in UK financial system, official says
BoE’s Nathanael Benjamin stated the bank will target an “ample” level of reserves—neither scarce nor excessive—as it unwinds QE, via auction facilities and collateral incentives .
Insight
The strategy seeks to balance liquidity normalization with financial stability, promoting efficient distribution of reserves through incentives.
BoE’s Mann warns demand surge without supply growth risks inflation setback
Bank of England MPC member Catherine Mann warned that strong demand without matching supply-side growth creates a “sugar high” for the economy, risking inflation setback. She cited inflation rising from 3.4% to 3.6% in June and voted to keep rates steady in May (Reuters).
Insight
Mann’s warning suggests the BoE may pause rate cuts; sustainable growth needs balanced supply-side expansion to avoid reigniting inflation.
UK’s Starmer suspends several Labour rebels
Prime Minister Keir Starmer suspended four Labour MPs—Neil Duncan-Jordan, Chris Hinchliff, Brian Leishman, and Rachael Maskell—for defying party lines on welfare reform; three more were removed from trade envoy roles .
Insight
Starmer is reasserting party discipline ahead of key legislative work, though the move may fuel left-wing criticism and internal division.
Starmer to suspend several Labour MPs
The Financial Times reports that Starmer took disciplinary action by suspending Labour MPs involved in rebelling over welfare cuts, emphasizing his stance on party unity.
Insight
The FT coverage highlights the strategic importance of internal cohesion for Starmer, but Temporary suspensions may exacerbate intra-party tensions.
Norway, US Have a ‘Good Tone’ in Tariff Talks, Stoltenberg Says
NATO Sec‑Gen Stoltenberg said U.S.–Norway tariff discussions have been conducted in a “good tone,” as governments work to resolve trade disagreements .
Insight
Cooperative rhetoric suggests positive momentum in addressing bilateral trade frictions, reinforcing economic ties.
Poland says it financed about 82% of its 2025 borrowing needs, PAP reports
Poland’s Ministry of Finance reported having secured approximately 82% of its €2025 borrowing requirements through bond issuance .
Insight
The strong borrowing pipeline indicates investor confidence, though broader fiscal stability depends on economic growth.
