Eurozone News
LAST UPDATE: July 17, 2025
Trump tariffs threaten US economy as much as European one, says German finmin
Germany’s Finance Minister warned that Trump’s proposed tariffs on EU goods pose risks to both transatlantic economies .
Insight
Berlin’s caution points to the fragility of global trade, suggesting reciprocal impacts even on U.S. economic health.
German Finance Chief Says Berlin Committed to Global Company Tax
Germany reaffirmed its support for a global minimum corporate tax, aligning with OECD efforts to curb tax avoidance .
Insight
This demonstrates Germany’s commitment to international tax fairness, reinforcing G20 and OECD tax reform agendas.
Portugal Is Set to Replace Centeno as Central Bank Governor
Prime Minister Luis Montenegro will appoint a new central bank governor when Mario Centeno’s term ends on July 19, marking a shift in leadership at the Bank of Portugal (Bloomberg.com).
Insight
This change could signal a pivot in monetary policy, with potential implications for Portugal’s alignment with ECB strategies and domestic economic priorities.
Bank of France Recommends Cutting Regulated Savings Rate to 1.7%
The Bank of France advised lowering the Livret A and other regulated savings rates from around 2.4% to 1.7% starting August 1 to better reflect market conditions and ease public sector borrowing .
Insight
Reducing these rates could decrease budgetary strain and encourage consumer spending, but it may also upset savers accustomed to low-risk returns.
ANALYSIS‑France’s plan to cull public holidays may not help the economy
PM François Bayrou proposes eliminating two public holidays—Easter Monday and one in May—to boost GDP, but studies suggest the economic impact would be minimal (~0.06%), given leisure value and tourism benefits .
Insight
The plan highlights the limits of austerity measures focused on working time; real gains likely require broader structural reforms rather than superficial calendar tweaks.
ECB Should Cut Rates to Weaken Euro, Italy’s Deputy Premier Says
Italy’s Deputy PM argued that ECB rate cuts are needed to curb the euro’s strength, which is hampering Italian exports and economic competitiveness .
Insight
This reflects internal EU tension over monetary policy: countries like Italy, reliant on export-demand, are pressing the ECB to ease policy despite broader inflation concerns.
