Eurozone News
LAST UPDATE: July 21, 2025
Euro zone firms upbeat but feel impact of trade tensions, ECB survey shows
Reuters
An ECB survey published July 21, 2025, reports that while euro-zone firms remain optimistic (net 23% expecting growth), about 30% are facing supply-chain delays and profit margin pressure due to trade tensions—especially with the U.S.—prompting firms to refocus on domestic/EU markets and adjust supply chains. Price growth expectations trimmed from 2.9% to 2.5%, though long-term inflation outlook remains steady.
Insight
Firms’ confidence in growth is resilient, but persistent trade disruptions are squeezing margins and forcing strategic shifts. The survey suggests the ECB may maintain caution, balancing support for growth with inflation control.
Germany’s Top Firms Kick Off Investment Push to Lift Economy
More than 60 major German corporations—including Siemens and Deutsche Bank—have launched a “Made for Germany” investment initiative pledging at least €100 billion ($116 billion) in new capital projects to help revive Europe’s largest economy amid prolonged stagnation. (bloomberg.com)
Insight
The initiative sends a powerful signal of private-sector resolve to rebuild Germany’s economic competitiveness through investments in infrastructure, technology, and AI. It highlights corporate confidence in Chancellor Merz’s reform agenda and could act as a catalyst for broader economic revival.
Greek current account turns to surplus in May
Greece’s current account swung to a surplus in May 2025, driven by tourism inflows, exports, and reduced energy import bills, marking the first such surplus in six months.
Insight
The surplus highlights Greece’s improved external balance and tourism resilience. Continued surpluses could support debt sustainability and reduce the need for external funding. However, volatility in tourism and energy prices remains a risk.
